Olympic Industries profit falls 34% due to higher tax burden
The nine-month performance (July–March FY26) also reflected a similar trend of rising costs
Olympic Industries, the country's leading branded biscuit manufacturer, reported a significant 34% decline in net profit for the January–March quarter of the 2025-26 fiscal year, mainly due to higher taxes and increased raw material costs fueled by geopolitical tensions.
According to the company's unaudited financial statements, net profit for the third quarter (Q3) fell to Tk28.47 crore, down from the same period a year earlier. Although revenue grew 9% to Tk708.81 crore, the cost of goods sold rose at a faster pace—up 13% to Tk555 crore—eroding margins. As a result, gross profit declined 4% to Tk153.80 crore.
The company attributed the erosion of its bottom line to two key factors: a heavier tax burden and rising costs of imported raw materials. Import expenses surged amid supply chain disruptions and heightened market volatility triggered by the Iran–US–Israel conflict, which has disrupted energy flows and driven up global input costs. Consequently, Olympic's income tax payment skyrocketed by 104% during the quarter, reaching Tk26.22 crore.
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The nine-month performance (July–March FY26) also reflected a similar trend of rising costs. Although total revenue grew by 5% to Tk2,256 crore, the cumulative net profit for the period fell by 7% to Tk148.18 crore.
At the end of the first three quarters, the company's earnings per share (EPS) stood at Tk7.41, while its net asset value (NAV) per share was recorded at Tk60.26.
Investor sentiment on the bourse remained cautious after the disclosure, with Olympic Industries' shares closing at Tk143.30 on Tuesday at the Dhaka Stock Exchange.
The manufacturer had earlier delivered strong results in FY2024–25, reporting a net profit of Tk201 crore and rewarding shareholders with a 30% cash dividend.
