As people shun eating out, Olympic grabs the opportunity
For the first time since its inception, the company attained the Tk1,500 crore sales mark in the 2019-20 financial year
During the 66-day countrywide lockdown and afterward, the drastic decline in eating out and consuming loose snacks seems to have greatly favored Olympic Industries Ltd.
Olympic Industries saw a sharp rise in its biscuit sales during the time, and the biscuit maker posted 22% growth to Tk393.39 crore in the April-June quarter this year.
For the first time since its inception, the company achieved Tk1,500 crore sales mark in the 2019-20 financial year thanks to the growth.
Keep updated, follow The Business Standard's Google news channel
According to the audited financial statement of 2019-20 financial year – which was disclosed on Tuesday evening – the company reported biscuit sales of Tk1,589.50 crore, which was 16% higher than the previous year.
Olympic Industries has witnessed 547% growth in sales in the last decade.
According to the Bangladesh Auto Biscuits and Bread Manufacturers' Association (BABBMA), the country's biscuit and confectionery market size is worth around Tk6,000 crore. And the market is forecasted to grow at 15% over the next 10-15 years.
According to an EBL Securities report, Olympic Industries has around 25% market share in the organised and industrialised biscuit market.
The company is currently the largest manufacturer, distributor and marketer of biscuits in Bangladesh. Its key brands include: Energy Plus, Nutty, Tip, Chocolate Plus, Digestive, Cracker Jack, and Lexus among 33 others.
Wishing anonymity, a senior officer of Olympic Industries said the novel coronavirus did not negatively affect their business; instead, sales increased during the lockdown.
"With the inflated demand at that time, we had to work hard to keep the countrywide supply chain stable," said the official.
"Since the demand for our products is increasing day by day, the company plans to expand production lines and introduce more food products," he added.
[In 2019-20 financial year,] Olympic Industry's net profit also rose by 8% to Tk202.49 crore. Its earnings per share was Tk10.13.
The company also recommended a 52% cash dividend to its shareholders for the last fiscal year. The 41st annual general meeting of the Olympic Industry is slated for 24 December this year. The record date is 26 November.
The company entered the stock market in 1989. Its current paid-up capital is Tk199.93 crore.
Olympic Industry's shares closed at Tk172 each on Tuesday at the Dhaka Stock Exchange. Its share price reached its highest of Tk207.50 last year.
Sponsor directors hold 27.73% of shares of the company while institutional, foreign and general investors hold 16.97%, 39.73% and 15.57% of Olympic Industry's stocks, respectively.
