Shwapno, Bangladesh’s largest retail chain, achieved record-breaking operating performance in FY24, posting its highest-ever sales, store-level profitability, and operating profits. The retailer saw revenue rise to Tk2,285 crore, a 25% increase from the previous year, fueled by a consumer-centric approach and innovative expansion, including 500 stores across 62 districts.
Managing Director, Sabbir Hasan Nasir attributed the 65% sales growth over two years to continuous innovation, year-round campaigns, and an increasing number of franchise stores, which contributed 42.4% of FY24 sales. The company improved its gross profit margin to 19.3% and reduced operating expenses to a record low of 17.8% of revenue.
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Despite a 145% growth in operating profit to Tk32.14 crore, rising borrowing costs, driven by high interest rates, resulted in a net loss of Tk196 crore. Most of Shwapno’s Tk1,850 crore debt comes from its parent company, ACI Limited, which has the option to convert the debt into equity.
Shwapno plans to rely on equity injections and attract foreign investment to overcome financial challenges, aiming to achieve its Break-Even Point within the next two to three years. Valued at $350 million by global investors, the company aspires to open 2,000 stores nationwide by 2030, cementing its position as a leader in Bangladesh’s retail industry.
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