RD Food to export products worth $1.1mn

Rangpur Dairy & Food Products Limited (RD Food) has obtained $1.10 million worth of export orders of flavoured milk and mango juice from several countries.

RD Food received these orders at "Gulfood Fair-2021" held on 21-25 February this year in World Trade Centre, Dubai in the United Arab Emirates, according to information revealed by the listed company to the bourses.

Most of the orders have come from Burkina Faso, UAE, Ghana, Mali, Republic of Moldova and Yemen.

The news has left a positive impact on the company's share price. On Monday, RD Food's share price increased by 3.26% to Tk22.20 each on the Dhaka Stock Exchange.

Riding on the export orders, the company's turnover will increase by Tk9.13 crore and earnings per share will rise by Tk0.10.

The company has been exporting its products to African countries since last year on a trial basis.

RD Food produces UHT milk, flavoured milk, juice and candy.

A senior officer of the company seeking anonymity told The Business Standard that demands for flavoured milk and fruit juice are increasing in African and Middle Eastern countries. The company is trying to tap these markets, he added.

Due to the pandemic induced slowdown in business in the last 2019-2020 fiscal, RD Food's profit dropped by 44%, although its revenue was similar to that of the previous year.

Even though the pandemic situation is going on, its revenue increased in the July-December period of current fiscal. In this period, the company's total revenue stood at Tk31.45 crore, up from Tk29.99 crore at the same time of the previous fiscal year.

The company made a profit of Tk2.35 crore and its earnings per share (EPS) stood at Tk0.32.

In FY20, the company's revenue was Tk61.09 crore, and its after-tax net profit stood at Tk2.21 crore, which were Tk60.75 crore and Tk3.17 crore, respectively, in the previous year.

As profit decreased, shareholders have received a 4% dividend – 2% cash and 2% stock – for the last fiscal year. In the previous fiscal, the company paid a 5% stock dividend.

About the profit fall, the company in its annual report said the costs of raw milk gradually increased by 20-25% over the year but sales of products remained unchanged. As a result, profit decreased despite positive growth in revenue.

The company that got listed on the stock exchanges in 2011 was placed under the 'B' category after it had paid dividends below 10%.

As of February this year, sponsor-directors held 31.14%, general investors 49.70%, and institutional investors 19.16% shares of the company.