Kohinoor Chemical Company Ltd.
Summary
Company Overview
Kohinoor Chemical Company (Bangladesh) Limited (KCCL) is the oldest and largest national Soap, Cosmetics and Toiletries manufacturer and marketer in Bangladesh. The company has 12 prominent brands running in the country. The company has the present management since 1993. It is listed in both DSE and CSE.
Corporate structure
KCCL has 50,000,000 authorized shares of BDT 10 face value each and the number of issued share is 22,200,750. The managing directors and the chairman of the company own more than 50% shares of the total stock of the company. The shareholding structure of the company is as such - sponsors 50.56%, institutions 14.98%, and general public 34.46%.
Financial analysis
The accounting period of KCCL starts on July 1 and ends on 30th June. The revenue of the company has increased to BDT 4,167 million in FY 2020-21- with an increase of around 6.86% from BDT 3,899.55 million in FY 2019-20. The sales growth was contributed by the sales growth of the cosmetics segment of the business. In FY 2020-21, the sales of cosmetics products increased by 34.43% while the sales of toiletries and miscellaneous products increased by 3.95% and 7.28% respectively compared to that of in FY 2019-20. Direct material cost is 75% of net sales FY 2020-21 which was 72% in previous FY. It has led the costs of goods sold to grow more than 6% in FY 2020-21. The gross profit of the company in FY 2020-21 was 19.27% which was 18.5% in the previous FY. The finance cost of the company in FY 2020-21 was BDT 412 million witnessing a degrowth of 38.8%. This was the result of repayment of short-term loan as well as decreased use of lease property of KCCL. The operating profit of the company has reached at BDT 301.768 million, achieving a 32.28% growth. Increased net profit has contributed to the EPS of BDT 10.54 in FY 2020-21 which has grown 39.23% from BDT 7.57 in FY 2019-20.1
The company made capital expenditure of around BDT 13.69 million in FY 2020-21 for the development of the company. The revaluation of the marketable securities has added more than BDT 182 million to the company assets and revaluation reserve in FY 2020-21. The cash received from the operations and sales has increased the cash and bank reserve of the company by more than 280%. But the high import cost has increased the accrued payment of KCCL by 1.92 times. The account receivable of the company has decreased around 40% which can be attributed to better receivable management. the decrease in account receivables and increased in accrued payments and revenue has increased the operating cash flow per share 13.33 times in FY 2020-21.
| Ratio | FY 2020-21 | FY 2019-20 |
| Gross profit margin | 19.27% | 18.5% |
| Net profit margin | 5.62% | 4.28% |
| Operating profit margin | 7.22% | 5.85% |
| Current ratio | 2.39 | 2.63 |
| Debt to equity ratio | 1.06 | 1.03 |
| Return on assets | 10.23% | 8.31% |
| Return on equity | 18.98% | 16.78% |
| Inventory turn over | 3.46% | 3.89% |
| EPS | 10.54 | 7.57 |
Share Market Insights
KCCL got listed in DSE in 1988 while in CSE in 1996. The trading code is KOHINOOR. Each share traded at BDT 394.9 as on 4 August, 2022. It is 8.57% higher than that of on 4 August, 2021. The number of outstanding shares is 25,530,863 as on 4 August, 2022. In 2021, dividend of BDT 3.5 and stock dividend of BDT 1.5 was declared. Its beta is 0.60 according to Amarstock. The number of shareholders in this company is more than 7,400.
Business overview
The company has been operating in this country since 1956. In 2020-21, the company earned more than BDT 4 billion. The gross profit margin was 19.27%. The sales revenue has increased by more than 6% while the net profit increased by 39% in 2020-21. More than 80% of the revenue is made through toiletries. The company can produce 40 metric tons toilet soap, 90 metric tons washing soap and 100 metric tons detergent per day. Around 2,389 people work for the company. The factory of the company is in Tejgaon. But the distribution network is established across the country. The company was awarded 2nd position in the category of "Large Industry" in National Productivity Excellence & Institutional Appreciation-2020.
The sales composition of the company is presented in the following picture. The sales of shaving cream, detergent powder and toilet soaps have decreased while the other products’ sales increased.
Products
Under cosmetics & toiletries, they sell Tibet Pomade, Tibet Perfumed Petroleum Jelly, Fair & Care, Tibet glycerin, Tibet Snow, Body Powder, Tibet Luxury Talcum Powder, Tibet Talcum Powder, Tibet Prickly Heat Powder, Tibet Baby Powder, Tibet Tooth Powder, Tibet Baby Lotion, Tibet Lather Shaving Cream B-22, Ice Cool Shaving Cream, Genstar Lather Shaving Cream, Tibet Pure Coconut Oil, Tibet Medicated Hair Oil, Tibet Pumpkin Hair Oil, Tibet Lip gel, Fruity Chap Stick, Tibet Chandan Attar and so on. Under Soap, they sell Tibet Beauty Care Soap (Pink, white, green and jasmine), Ice Cool Soap, Sandalina Sandal Soap, Bactrol Family Health Soap and so on. Under Detergent, they sell Tibet 570 Laundry Soap (Red, Green and Blue), Tibet Ball Soap, Tibet Detergent Powder, Xpet Dish Wash Powder and so on.
