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ShopUps FMCG unit posts Tk 20cr profit in 11 months

Published : Monday, 24 June, 2024 at 12:00 AM  Count : 284

ShopUp, Bangladeshs largest B2B commerce platform, has announced that its FMCG (fast moving consumer goods) distribution unit, Mokam CPG, has achieved an operating profit of BDT 20 crores for the first eleven months of outgoing fiscal year (2023-24).

This achievement marks a momentous occasion for Mokam, reflecting the effectiveness of its strategic financial management and operational efficiency.
 
From July 2023 to May 2024, Mokam CPG has generated over BDT 1800 crores in revenue, with projections to surpass BDT 2,000 crores by the end of FY2024, representing over 70% year-over-year growth, says a press release.

Mokams financial performance also highlights a positive turn in Profit Before Tax (PBT) for the first time, showcasing a projected improvement of 170% by the end of FY2024.

This is the first time a B2B startup of this scale has reached PBT positivity in such a short time and also one of the only ones in the Southeast Asian region, says the press release.

These achievements were possible because of data-driven decision-making, resulting in an inventory holding period that is 35% more efficient than traditional distribution houses.

Furthermore, the company benefits from having industry-specific top talents, which enhances both negotiation capabilities and strategic planning.

Additionally, gross margins have seen an increase of 195%, with an expectation of achieving a three-times improvement year-over-year.

This improvement in gross margins has been possible due to cost management and operational efficiency, aligning with the companys long-term growth strategy.

Nazir Ahmed, CEO of Mokam CPG commented: "We are well on track to reach Profit After Tax profitability by the end of the fiscal year. This milestone is a testament to the hard work and dedication of our team and partners."

Currently, Mokam CPG serves major local and international brands in the likes of ACI, Banglalink, Elite, Grameenphone, Himalaya, JTI, Lafz, Marico, Meghna Group of Industries, New Zealand Dairy, Olympic, Reckitt, Remedist, Robi, RSPL, Square Food and Beverages Limited, Square Toiletries Limited, Syngenta, TK & Unilever Bangladesh and many more. It operates over 204 distribution centers across the nation.

As ShopUp continues to scale its operations, the focus remains on doubling down as a fully local supply chain. Mokams profitability sets a strong foundation for future growth and reinforces ShopUps position as a market leader in the FMCG distribution sector.







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