Golden Harvest rebounds in earnings in the first quarter
Golden Harvest Agro Industries Limited, which operates in the frozen food and ice cream business, returned to profit in the July-September quarter of fiscal 2021-2022 after suffering losses in four consecutive quarters .
In the first quarter, it reported net profit of Tk 0.29 crore compared to a loss of Tk 7.41 crore in the same period last year.
But its sales had yet to catch up to pre-pandemic levels, and weak sales made it difficult for the company to repay bank loans.
Its sales jumped 38% to Tk16.21 crore in the first quarter of this fiscal year, but sales value was around Tk30 crore in the pre-pandemic quarter.
At the end of September, his total long-term loan was Tk 97.75 crore and the current portion of the loan is Tk 29 crore, which is payable this year.
A senior company official, seeking anonymity, said demand for frozen food increased during the pandemic, but the company’s business declined with the closure of small fast food stores. Because a lot of the frozen food was supplied to these places. In addition, due to the closure of schools and colleges, tiffin-related sales were not available.
He added that the ice cream business had suffered the most. The company sells more ice cream in bulk. But business was not going well because the small stores were closed.
During this time, the company started to export frozen food. He expects good business in the coming days, he said.
It won’t take long for the business to reach pre-pandemic levels due to the changing habits of the population after schools and colleges open. As a result, the company’s ability to repay the loan will increase, he said.
However, Lovello Ice Cream PLC, another ice cream maker, reported 20% sales growth to Tk 24.93 crore in the first quarter of this fiscal year. The Lovello manager said the company provides good quality ice cream nationwide at low prices. In this way, their ice cream is within the reach of all kinds of consumers. So business has also been good during the pandemic.
Meanwhile, MABS and J Partners, the auditor of Golden Harvest, stated in its qualified opinion in the annual report for fiscal year 2020-21, the company provided Tk4.83 crore as a deposit of money to its Golden Harvest subsidiary QSR Limited but the company did not convert the deposit into shares within six months in accordance with the Financial Reporting Council circular.
In fiscal year 2020-21, it suffered a loss of Tk 15.63 crore as sales fell 35% to Tk 54.48 crore.
Despite the loss, he finalized a 3% cash dividend only to general shareholders. He had previously paid a 2% cash dividend on an interim basis. The total dividend was 5% for fiscal 2021 and the company will pay it out of its retained earnings.
Golden Harvest Agro Industries was listed on the country’s stock exchange in 2013. Its paid-up capital is Tk 215.80 crore.
Until November 30, sponsors and directors held only 32.88%, institutional investors 37.28% and general investors 29.75% of the shares of the company.
The price of each Golden Harvest share closed at Tk 17.50 at DSE on Sunday.