Bangladesh spinners reap profits

Spinning mills in Bangladesh are posting stellar profit growth. The price they are commanding has outgrown costs amid an increase in sales, especially for spinners who produce comparatively higher value yarns.

The profitability cycle began a year ago when Bangladeshi apparel exporters began to receive abundant orders from global buyers amid a disrupted supply chain worldwide. Except some with special problems or negative legacies, most publicly listed textile and spinning companies posted business growth for the 2020-21 fiscal year. Apparently, the trend is to continue in the first quarter of this fiscal year too.

Matin Spinning Mills, a concern of DBL Group, posted 212 per cent year on year growth in quarterly profits for the July-September quarter this year. Maksons Spinning Mills, which was struggling to maintain less than decent bottom line before the pandemic, is now flying high as its sales and profit margins have improved. In late 2020, Maksons’share price began to recover as informed investors began to foresee the good days. Maksons plans a spinning mill project to manufacture high-value yarns which are offering a higher sales growth and of course a better profit margin.