Bangladesh lubricant producer Lub-rref posted a 7% improvement in operating profit for the quarter ended March 31, thanks mostly to a reduction in financial expenses and despite an 8% drop in revenue.
The company, which is based in Chittagong, Bangladesh, had an operating profit of 86.4 million taha (U.S. $1 million) for the period – the third quarter of its fiscal year – compared to 80.7 million for the same period a year earlier.
Net revenue fell from 440.3 million taha during the third quarter of the previous fiscal year to 403 million taha during the same period this year, according to the company’s latest filing on the Dhaka Stock Exchange. However, the company’s financial expenses dropped from 40.3 million taha to 27 million taha, more than offsetting the decline in gross profit.
The drop in sales may have stemmed from the country’s ongoing battle against the COVID-19 pandemic. The government has imposed significant restrictions on movement and commerce after the number of reported cases surged during the first quarter. The country’s vaccination rate remains in the low single digits.
The company’s quarter report did not include commentary about its performance.
Lub-rref markets finished lubricants under its BNO brand. In February it completed an initial public stock offering, raising funds intended to finance expansion. Part of the proceeds were also earmarked to reduce debt, which should lower financial expenses.