Booming tissue sales boost Bashundhara Paper’s revenue, profits

The booming sales of tissue and hygiene products in the coronavirus pandemic have boosted both the profit and revenue of Bashundhara Paper Mills.

The market leader in the tissue industry has reported a 23% year-on-year growth in revenue in the first half of the current fiscal year, while its profit grew by 42%.

The revenue of Bashundhara Paper Mills Limited, which is also a major player in the country's paper industry, comes mainly from two segments – paper and tissue products. 

A significant portion of revenue also comes from the sales of various hygiene products such as diapers and sanitary napkins.

According to officials at the company, the stake in its total revenue from the tissue segment has been increasing because of the rise in health consciousness among the people amid the pandemic.

As educational institutions were closed for a long time for Covid-19, its paper segment's contributions declined.

But after the reopening of the educational institutions in September last year, paper sales increased again.

As per sales data, its revenue from paper, and tissue products was almost the same in the July-December of 2021, although in the normal time, paper's revenue was much higher.

In the first half of the 2021-22 fiscal year, its total revenue stood at Tk540.30 crore, which was Tk437.71 crore a year ago.

Of the revenue, 38% or Tk205.85 crore came from the paper segment, and 37.67% or Tk203.56 crore from the sale of tissue products.

In FY21, Bashundhara Paper Mills had received 43% revenue from the sales of paper products, 37% from tissues, and 19% from hygiene items.

M Mazedul Islam, company secretary of the Bashundhara Paper Mills, told The Business standard, "The sales of tissue products have increased mainly for the Covid-19 pandemic as people are aware of infections. But paper sales decreased as education institutions were closed for a long time."

The profit of the company rose to Tk18.13 crore, and earnings per share (EPS) to Tk1.04, which was Tk12.75 crore, and Tk0.73, respectively, a year ago.

A rise in local sales and exports  

The sales of Bashundhara Paper Mills products have been increasing gradually in both local and international markets.

According to the company data, its 91.08% revenue came from local sales, and 8.92% from exports in the July-December period of fiscal 2021-22.

Its local sales grew 25% to Tk492.06 crore and exports rose 9% to Tk48.24 crore, up from Tk393.56 crore, and Tk44.15 crore, respectively.

A company official said the exports of its tissue and hygiene products increased significantly.

October-December revenue exceeds the pre-pandemic level

In the second quarter, the company's revenue surpassed the pre-pandemic level.

In the October-December quarter of the 2021-22 fiscal year, its revenue jumped 42% to Tk340.60 crore, which was Tk239.63 crore, and Tk215.25 crore in the corresponding period of FY21, and FY20, respectively.

Its profit soared 49% to Tk11.31 crore, up from Tk7.57 crore a year ago.

M Mazedul Islam said, "In this quarter, our revenue increased following the reopening of educational institutions."

"When these were closed, the company's revenue had dropped significantly," he added.

Bashundhara Paper Mills Limited, which was incorporated as a private limited company in 1993, got listed on the capital market in 2018.

The company manufactures various types of paper, tissue and hygiene products in its three units. Its products are exported to over 35 different global destinations.

In fiscal 2020-21, the company made a profit of Tk41.11 crore and paid a 12% cash dividend to its shareholders.

On Sunday, its share price closed at Tk62.40 each.

Rev: Moin