Lovello Ice-cream’s profit soars 73pc in Q3 on higher sales revenue
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Lovello Ice-cream posted an impressive 73 per cent year-on-year growth in profit to Tk 61.44 million for the third quarter of FY24, riding on higher sales.
Accordingly, earnings per share jumped to Tk 0.71 for the January-March quarter from Tk 0.41 for the same quarter a year ago, according to a stock exchange filing on Tuesday.
Following the earnings disclosure, the stock of Lovello Ice-cream soared 3.62 per cent to close at Tk 62.90 on the Dhaka Stock Exchange on Tuesday.
"The company's sales increased in the quarter as the summer season began. As a result, net profit rose in comparison to that of the second quarter of the current financial year," said company secretary (acting) Kawser Ahmed.
Lovello Ice-cream's sales jumped more than 60 per cent year-on-year to Tk 397 million in the quarter through March this year.
"The robust sales growth during the quarter compared to the same quarter last year helped profit growth," said Mr Ahmed.
The company's nine-month profit escalated 12 per cent year-on-year to Tk 108.4 million until March this year, with higher sales revenue.
The net asset value per share rose to Tk 13.21 in the three months to March from Tk 12.94 a year earlier, while the net operating cash flow per share went up to Tk 3.50 from Tk 2.12 during the period.
Ice-cream has become more popular in recent times with the growing spending capacity, urbanisation, and greater access to electricity in rural areas.
Lovello Ice-cream has been in the ice cream business since 2016 under the brand name Lovello.
The company raised Tk 300 million through an initial public offering (IPO) to expand its business in 2021.
The company's annual profit fell more than 13 per cent year-on-year to Tk 105.4 million in FY23. It paid a 10 per cent cash dividend for FY23, down from 12 per cent the previous year.