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Yeakin Polymer may return to full production after ownership change

Its losses doubled year-on-year in July-Sept


| Updated: December 26, 2022 09:12:48


Yeakin Polymer may return to full production after ownership change

Yeakin Polymer is likely to return to full-scale production after the change of ownership already approved by the regulator in May.

Its business collapsed just two years after it raised Tk 200 million through an initial public offering in September 2016.

Until 2019, the company reported revenue and profit growths. The business went into the red just before the pandemic began. In the latest quarter ended in September, the loss doubled year-on-year to Tk 20.64 million.

ABM Mahmudul Hasan, chief financial officer of Yeakin Polymer, said the production had been reduced due to a shortage of working capital, hence the rising loss.

The trouble began after Yeakin Polymer defaulted loans from Islami Bank Bangladesh, according to the auditor.

Kapita Packaging Solutions is going to take over Yeakin Polymer, a poly sack manufacturer, by purchasing 30.11 per cent shares from the sponsor-directors of Yeakin at the face value of Tk 10 each.

The company reported earnings per share of Tk (0.28) in Q1 of FY23, worsened from Tk (0.14) in the same quarter of FY22.

The board of directors of the company is trying to start full-scale production as soon as possible, said Mr Hasan.

The net operating cash flow per share stood at Tk (0.01) for the Q1 ended in September down from Tk 0.05 a year earlier.

The company endured a loss of Tk 52.36 million in the fiscal 2021-22, increased by 29 per cent from the previous fiscal year.

It declared no dividend for FY22 and FY21, having disbursed only 1 per cent cash dividend for FY20.

The Satkhira-based company started commercial operation in 2003 to manufacture and market polypropylene woven bags. Its products included bulk bags, coal-carrying bags, animal and aqua feed bags, chemical and fertilizer bags, food grain and reusable shopping bags.

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