Sonali Paper reports strong Q2 profit with increased revenue, share price surges
During the quarter, the company’s revenue grew 15% year-on-year to Tk96.13 crore, up from Tk83.60 crore in the same period last year
Sonali Paper and Board Mills, a concern of Younus Group, reported a significant profit growth in the second quarter (October-December) of the current fiscal year, driven by increased revenue and lower financial losses.
During the quarter, the company's revenue grew 15% year-on-year to Tk96.13 crore, up from Tk83.60 crore in the same period last year. Its profit after tax stood at Tk12.25 crore, marking a sharp turnaround from a Tk0.57 crore loss a year ago.
According to its financial statement published today (10 February), the company generated profit from its core business operations, while losses from other income sources – mainly capital market investments – were significantly reduced. Additionally, finance costs declined during the period, further boosting profitability.
Its other income loss stood at Tk38 lakh, a sharp improvement from the Tk5.42 crore loss in the same period of the previous year.
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Stock performance
In the last six trading days, Sonali Paper's share price rose 20% on the Dhaka Stock Exchange (DSE), climbing from Tk125.20 to Tk150.80.
The company's earnings per share (EPS) stood at Tk3.72, compared to a loss per share of Tk0.17 a year ago. Its net asset value per share was Tk166.21 as of December 2024.
For the July to December period, Sonali Paper reported total revenue of Tk153.36 crore, slightly up from Tk151.60 crore a year ago.
Its profit after tax for the six-month period stood at Tk18.06 crore, a strong recovery from the Tk17.79 crore loss in the same period of the previous fiscal year. EPS for this period was Tk5.48, up from Tk5.40 a year ago.
For FY24, the company has recommended a 20% cash dividend for its shareholders.
Meanwhile, though Sonali Paper posted a strong profit growth in the second quarter, industry giant Bashundhara Paper Mills faced a significant loss, reporting a Tk70.13 crore loss in the same quarter.
Recent growth
Sonali Paper specialises in producing white, printing, simplex, and duplex papers for the local market. Founded in 1977, the company was listed on the Dhaka Stock Exchange in 1985.
However, due to non-compliance with listing regulations, it was relegated to the over-the-counter (OTC) market for ten years before returning to the main board in 2020 after a successful business revival.
Following its relisting, Sonali Paper experienced substantial growth, with revenue reaching Tk217.80 crore in FY22, up from Tk150 crore in FY21. This upward trend continued in FY23, with revenue climbing to Tk264 crore.
As of 31 December 2024, the company's shareholding structure comprised 67.51% held by sponsors and directors, 6.29% owned by institutions, and 26.20% held by the public.
