reports
- Shopnil Paul
- Tanay Roy
Olympic Industries: Q3FY23 35% NPAT growth driven by 9% revenue growth...
* OLYMPI posted c35% yoy NPAT growth in Q3 FY23. The earnings growth is primarily by two factors; 9.0% YoY growth in topline revenue and 412bps YoY improvement in opex to sales ratio. In 9M FY23, the reported EPS increased by 42.5% yoy. * The sales revenue increased by 9.0% yoy in Q3 FY23. Please note that the company adopted the ‘Shrinkflation’ strategy i.e. reducing the quantity of the product while keeping price the same as before from the second half of 2021. The higher revenue grow...
- Md Rashadur Rahman Ratul
Equity Insight on Olympics Industries Ltd (OLYMPIC)
Olympic Industries Ltd. engages in the manufacturing and retailing of consumer goods, particularly branded biscuits and confectionary items and batteries. Its product portfolio contains premium to standard segment of biscuits, cookies and bakery, confectionery, candy and batteries. Olympic Industries is currently the market leader with around 25%-30% market share in the branded biscuit market and holds the second position in the battery market in Bangladesh.
- Shopnil Paul
Olympic Industries: OLYMPIC Q2 FY23 Earnings Update; 90% NPAT growth d...
OLYMPI posted c90% yoy NPAT growth in Q2 FY23. The earnings growth is driven by the ‘Shirnkflation’ strategy and the cooling off of the raw material prices. As a result, we have observed significant growth in revenue and margin improvement. In 6M FY23, the reported EPS increased by c46% yoy. The sales revenue increased by c26% yoy in Q2 FY23. The scale of growth in top-line revenue is attributable to the company’s ‘Shrinkflation’ strategy i.e. reducing the quantity of the product while keepin...
- Shopnil Paul
- Tanay Roy
Olympic Industries: Q1 FY23: c13% yoy earnings growth driven by c38% r...
* 13% yoy earnings growth in Q1 FY23. The reported EPS in the quarter was BDT 2.33 vs BDT 2.06 in Q1 FY22. The c38% growth in top-line revenue was the main driver of yoy earnings growth. * The sales revenue increased by c38% yoy in Q1 FY23. The scale of growth in top-line revenue is attributable to the company’s ‘Shrinkflation’ strategy i.e. reducing the quantity of the product while keeping price the same as before. * The ‘Shrinkflation’ strategy came up against the backdrop of th...
- Tanay Roy
Olympic Industries: OLYMPIC FY22: Earnings decline -41% YoY in FY22, -...
* Earnings decline -41% YoY in FY22, -59% YoY in Q4 FY22. EPS in Q4 FY22 stood at BDT 0.91 against BDT 2.23 in Q4 FY21, implying a -59% decline. In FY22, OLYMPIC reported EPS BDT 6.03 against BDT 10.19 in FY21, implying a -41% decline. Actual EPS of BDT 6.03 in FY22 fell short of our estimate of BDT 7.5. This dent in profit was driven mainly by lower profitability stemmed from rising raw material costs because of high commodity price and currency depreciation. * Dividend payout rose ...
- Shopnil Paul
- Tanay Roy
Olympic Industries: Q2 FY22 – c600bps cut in margin dragged down profi...
Olympic reported BDT 1.2 EPS (NPAT BDT 308mn) in Q2 FY22 against BDT 2.5 (NPAT BDT 504mn) in Q2 FY21, implying c39% yoy decline in earnings. The plunge in earnings, despite c15% sales growth, was driven by a c600bps contraction in gross margin. Olympic’s 6M FY22 EPS amounted to BDT 3.6 vs 6M FY21 EPS of BDT 5.4, denoting a c33% yoy decrease in profit. Gross margin declined by c600bps YoY in Q2 FY22. The price of two key raw materials for this cookies manufacturer has had a sharp increase in t...
- Auneea Haque
- S.M Galibur Rahman
Olympic Industries: Bottom-line fell amid commodity price upsurge; Rei...
Revenue grew by 6.6% YoY in Q1 21/22, underperforming our expectations. Olympic posted Q1 21/22 revenue of BDT4,966mn against BDT4,658.7mn in the same quarter of the previous year. In the prior year, Olympic generated high revenue during the covid outbreak due to more sales of family pack biscuits and a shift in consumer preference towards packaged food. We believe, revenue has started to normalize from the higher base. Nonetheless, we believe the growth momentum will continue for the market ...
- Auneea Haque
- S.M Galibur Rahman
Olympic Industries: c11% topline but only c5% bottomline growth due to...
Revenue grew by 11.2% YoY in Q3 20/21, underperforming our expectations. Olympic posted Q3 20/21 revenue of BDT4.4bn against BDT4.0bn in the same quarter of the previous year. Olympic maintained double-digit top-line growth for seventh consecutive quarters, giving evidence that consumer preference has started to shift towards packaged food amid pandemic. We believe, the growth momentum will continue for the market leader. In the first nine months of 20/21, revenue grew by 14.8% YoY to BDT13.7...
- Auneea Haque
- Tanay Roy
Olympic Industries: Q2 20/21 – Robust sales growth continue but yet to...
Revenue grew by 15.6% yoy in Q2 20/21, beating our expectations by 2%. Olympic posted Q2 20/21 revenue of BDT4.7bn against BDT4.0bn in the same quarter of the previous year. Olympic continued to show resilient sales growth, maintaining double-digit top-line growth for the sixth consecutive quarters. Due to the outbreak of the pandemic, numerous small bakeries and biscuit manufacturers failed to continue their operations and shut down their businesses which directly benefitted the large biscui...
- Auneea Haque
- Tanay Roy
Olympic Industries: Q1 20/21 – c18% revenue growth did not translate i...
Revenue grew by 17.5% yoy. Olympic posted Q1 20/21 revenue of BDT4.7bn against BDT4.0bn in the same quarter of the previous year, beating our expectations. Although there was no lockdown during this quarter, all schools and colleges remained closed. Despite that, Olympic’s sales continued to grow significantly. We believe, biscuit consumption remained high as many people are staying indoors. And Olympic being the market leader took maximum benefits. Olympic has maintained double-digit top-lin...
- Auneea Haque
- Tanay Roy
Olympic Industries: c8% growth in annual earnings led by double digit ...
FY 20 annual revenue stood at BDT15,895mn, growing by c16% yoy. In Q4 FY20, Olympic generated BDT 3,934mn revenue against BDT 3,214mn in Q4 FY19, growing by staggering c22% yoy. Please note that during Q4 FY20 (Apr-Jun 2020) Bangladesh went under 66-day lockdown. Throughout this time, all schools and colleges remained closed. Despite that, Olympic’s sales grew significantly (Olympic’s quarterly yoy revenue growth crossed 20% after 17 quarters). We believe, this was because people purchased fa...
- Auneea Haque
- Tanay Roy
Olympic Industries: Q3 FY20 – Maintained double digit revenue growth...
Revenue grew by 11.4% yoy. Olympic posted Q3 19/20 revenue of BDT4.0bn against BDT3.6bn in the same quarter of the previous year. We think much of the growth was driven by new biscuits launched this year. Alongside, we believe Olympic’s new product lines - wafers, toffee, bakery and noodles have started contributing to sales growth. However, rising revenue came on the back of higher selling expenses. In Q3 19/20, selling expense as a percentage of sales increased by c186bps to 13.9% from 12.1....
- S.M Galibur Rahman
- Shopnil Paul
- Tanay Roy
Bangladesh – Economic activities resume; we prefer Telco, Consumer, ...
No more general holiday from 31 May On May 31, 2020, Bangladesh will mark the end of 66-day long ‘General Holiday’ (38 days lockdowns, 20 weekends, and 8 public holidays) as the economic activities resume on a ‘limited scale’. For the next 15 days, all private and public offices and factories are allowed to remain open, complying to the health rules, from 6am to 4pm. However, people are requested to stay home from 8pm to 6am without emergency needs. The stock market was also closed for t...
- Auneea Haque
- Tanay Roy
Bangladesh consumers: Expect increase in economic activities from July
The long ‘Holiday’ hits the season of the largest retail sales. Bangladesh identified the first Covid-19 patient on 8 March and has reported 25,121 confirmed cases, 370 deaths, and 4,993 recoveries till 19th May 2020. Bangladesh is set to experience a 66-day long ‘holiday’ till 30th May, comprising of 38 days of general holiday (i.e. lockdowns), 20 weekends, and 8 public holidays. The supply-side experienced distribution challenges from the law enforcement agency during the first two wee...
- Asaduzzaman Ashik
Equity Valuation Report on Olympic Industries Ltd. December 2019 Updat...
Olympic Industries is the market leader in biscuit, cookies and confectionary market in Bangladesh having market share of 39% of the total branded market for biscuits and confectionary items. The company is capturing the market share by launching new products and strategic pricing. The Biscuit market is fiercely competitive and the threat of new entrants is very high. A huge variety of quality products is available to the consumers. On the other hand, production and distribution of duplicate or ...
- Asaduzzaman Ashik
Equity Valuation on Olympic Industries Limited
Olympic Industries is the market leader in biscuit, cookies and confectionary market in Bangladesh having market share of 39% of the total branded market for biscuits and confectionary items. The company is capturing the market share by launching new products and strategic pricing.
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