OLYMPIC: 2QFY23 Earnings Update

Olympic Industries Limited (OLYMPI BD) posted 90.4% profit growth in 2QFY23

·         Revenue grew significantly by 26.30% YoY in 2QFY23. We observed that the company increased prices of its products in recent time. Some new verities of products has also been introduced by the company.

·         Gross profit margin increased by ~391bps to 26.0% in 2QFY23. Prices of major raw materials of OLYMPI BD namely Wheat, Sugar, Palm oil, normalized in in the international market in the last six months from recent peak. In the last few quarters pressure on margin came from both commodity price hike and BDT depreciation. Now decline in the commodity price help the company recover some margin. Notably, GPM of OLYMPI BD used to hover around 30%-40% range before pandemic.        

·         Increase (23.2% YoY) in selling expenses was partially offset by decrease (15.5% YoY) in administrative expenses. Overall, operating margin increased by 482bps YoY.

·         Effective tax rate increased to 26.0% in 2QFY23 from 24.5% in 2QFY22. Net earnings after tax grew by 90.0% and EPS stood at BDT 2.93 in 2QFY23 riding on stellar revenue growth margin expansion .

Revenue (BDT mn)5,3866,80310,35213,674
Gross profit (BDT mn)1,1901,7682,4893,430
EBIT (BDT mn)3968289141,422
NPAT (BDT mn)3085867211,051
EPS (BDT)1.542.933.615.26
BVPS (BDT)44.42 47.60 44.42 47.60 
Growth YoY    
Gross profit-9.3%48.6%-7.0%37.8%
Gross profit22.1%26.0%24.0%25.1%