How Carew made record profits despite sales slowdown

Carew and Company (Bangladesh) has defied a sales slowdown to post a record profit of Tk190 crore in FY2024-25, its highest in nearly nine decades.

Here's how the state-owned distiller achieved it:

Import restrictions boost demand: Strict limits on foreign liquor imports have sharply increased demand for Carew's locally made alcohol since 2021.

Expansion to meet demand: The company expanded its production capacity to cater to growing domestic demand for Carew-branded liquor.

Record distillery performance: The distillery unit alone recorded a 32% profit rise from the previous year, becoming the company's main profit driver.

Consistent high revenue: Despite a 3% fall in gross revenue to Tk444 crore, the company has maintained over Tk400 crore in revenue and Tk100 crore in net profit from the distillery for three consecutive years.

Strong net profit margin: The distillery's net profit margin stands at 43%, reflecting efficient operations and strong cost management.

Price adjustments helped: The company raised the prices of its liquor products last year, helping to sustain profitability despite lower sales volumes.

Cost control measures: Tight control over factory expenses and improved efficiency supported profit growth even during a slowdown.

Collection of outstanding dues: Recovery of dues from the distillery unit added to the year's profit performance.

Diversified business segments: Other units, including bio-fertiliser, farm, and pharmaceuticals, also recorded their highest-ever profits this year.

Sugar unit still a burden: The sugar division posted a Tk62 crore loss, but profits from liquor and other units outweighed the deficit.

Long-term modernisation plan: The company is investing Tk102 crore to modernise its sugar mill, hoping to reduce losses in future.

Historical milestone: Carew's total profit of Tk190 crore marks the highest in its 87-year history, despite challenges in production and sales.