In a historic milestone, Olympic Industries has reported annual biscuit and confectionery sales surpassing Tk 2,500 crore, fueled by the increasing demand for packaged bakery and confectionery products.
Bangladesh’s leading biscuit and confectionery seller disclosed a notable 20.2 percent year-on-year surge in total sales revenue, reaching Tk 2,579 crore during the fiscal year 2022-23.
Of this figure, Tk 2,536 crore stemmed from the sales of biscuits, confectionery, bakery, and snack products, including exports valued at Tk 26 crore. The remaining Tk 43 crore was generated from dry cell battery sales.
Despite a decline of 8.34 percent in the quantity of biscuits, confectionery, bakery, and snack products sold (amounting to 118,706 tonnes), Olympic Industries attributed the adjustment to the rising costs of raw materials. The company reduced product weights in response to elevated raw material prices while maintaining existing price points, as highlighted in its annual report.
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Ongoing efforts to normalize profit margins and ensure market-acceptable price points for sustained sales have been crucial amid escalating raw material prices, according to the company.
Satya Ranjan Mondal, the general manager of the company’s accounts and finance, noted that despite significant increases in the costs of raw materials such as refined flour, oil, and sugar, the company managed to enhance profits and declared substantial dividends for shareholders in the fiscal year 2022-23.
The Trading Corporation of Bangladesh reported a 75 percent increase in refined flour prices, a 17 percent rise in oil prices, and a 91 percent surge in sugar prices over the past two years.
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Olympic Industries experienced a 29 percent year-on-year profit growth, reaching Tk 155.6 crore during the fiscal year 2022-23. However, the profit margin, relative to sales, stood at 6.04 percent, significantly lower than the double-digit margins achieved in previous fiscal years.
Company secretary Mintu Kumar Das highlighted that Olympic Industries commands approximately 90 percent of the local market sales for such products and possesses untapped growth potential.
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The company’s production capacity, at 148,601 tonnes annually for biscuits, confectionery, and “flavored” saline, was utilized over 80 percent in the fiscal year 2022-23.
In response to the high demand for biscuits, Olympic Industries unveiled plans to invest in acquiring land and importing advanced production lines, including a high-speed instant noodles production line from Japan and a baked snacks processing line. The investments aim to expand the existing production capacity from 8,316 tonnes to 19,008 tonnes per annum.
