Maksons Spinning Mills PLC has announced a staggering loss of Taka 40.75 crore for the first quarter of the current fiscal year, marking a 61 per cent increase in losses compared to the same period last year. The financial turmoil is attributed to soaring raw material costs and escalating financial charges, which have significantly impacted the company’s performance.
In its financial statements, Maksons highlighted that increased raw material costs, higher salaries and wages, rising utility expenses, and elevated interest rates were key factors driving the decline. Sales for the first quarter fell to Taka 95.77 crore, representing a 19 per cent decrease year-on-year, which the company attributes to reduced sales volume and pricing pressures.
The net operating cash flow per share (NOCFPS) also reflected the company’s struggles, registering at Taka 3.51 in the negative for the July-September 2024 period, compared to Taka 0.74 in the negative during the previous year. This decline is linked to heightened costs and additional expenses.
Moreover, the net asset value (NAV) per share decreased to Taka 10.62 as of 30th September 2024, down from Taka 12.29 on 30th June 2024. The company indicated that operational losses were a significant contributor to the decline in NAV.
Established in 2003 and converted into a public limited company in 2005, Maksons Spinning Mills operates with 100,680 spindles and utilises machinery sourced from countries such as Japan, China, India, Italy, the USA, Germany, Switzerland, and Taiwan. The company specializes in producing high-quality yarn for export, with an annual production capacity of 21.25 million kgs, offering a range of products including 100 per cent cotton yarn, organic yarn, combed yarn, Supima yarn, and high-quality compact yarn.
