MI Cement sees 33% revenue rise in FY17-18

Bangladesh's MI Cement Factory reported a 33 per cent rise in revenue in FY17-18, compared to the previous financial year, supported by new capacity and market expansion.

The company's total revenue reached BDT12.56bn (US$150m) in FY17-18, up from BDT9.44bn in the previous financial year.

However, MI Cement's net profit fell by more than 52 per cent YoY to BDT315.6m on the back of rising administrative costs of selling and distribution. "The cost of goods sold (COGS) has increased by 39.09 per cent in 2017-18 over the previous year due to increase in cost of raw materials consumed, packing cost, fuel/power consumption cost and factory overheads, which were beyond the control of the management," according to its annual report.

Masud Khan, CEO of MI Cement, said the cost of all raw materials, including clinker, rose considerably. "The devaluation of currency against the dollar and the hike of financial costs, including transport cost, have also left a negative impact on our business," he said.

Moreover, the electricity cost soared due to an increase in production volumes following the introduction of the new Unit 5 and the hike in commercial electricity tariffs.