ACI suffers losses for third year

ACI Limited, one of the leading listed conglomerates in Bangladesh, has suffered a loss for a third consecutive fiscal year, saying it was mainly due to a rise in borrowing costs.

In the fiscal year 2024-25, the loss amounted to Tk 65 crore. It incurred a loss of Tk 139 crore in the previous fiscal year, 2023-24, and another loss of Tk 49 crore in fiscal year 2022-23.

Despite the losses, the board of directors of the company announced a 25 percent cash dividend for its shareholders.

During the last fiscal year, the company achieved consolidated revenue growth of around 11 percent and a 15 percent increase in consolidated gross profit, the company said in a disclosure on the Dhaka Stock Exchange (DSE) website today.

The growth in gross profit exceeded the growth in operating expenses due to cost-control initiatives, which contributed to the improvement of operating profit, it said.

"On the other hand, the cost of borrowings increased due to the rise in the interest rate along with additional funding for working capital and strategic investments to support business growth," it said.

As a result, consolidated earnings per share were Tk 7.40 in the negative during the period.

Its net operating cash flow per share was Tk 51.63 in the negative, whereas it was Tk 0.71 in the previous year, "mainly as a result of the investment in working capital."

Stocks of the company dropped by around 1 percent to reach Tk 170 at the DSE yesterday.

In spite of the recurring losses, ACI's sponsors and directors still have faith in the company and continue to buy shares from the market.

Sponsors and directors held 36 percent of the company's shares as of June 2024; the proportion rose to around 46 percent last September.