Monno Ceramic financial analysis: gas cut, finance cost 2.5x operating profit, qualified audit (Oct 2026)

Investment considerations: a tableware plant without pipeline gas, with finance cost above operating profit and a qualified audit

Monno Ceramic Industries Ltd. makes porcelain and bone china tableware at Islampur, Dhamrai, outside Dhaka. It was incorporated in April 1981, listed on the Dhaka Stock Exchange in 1985 and the Chittagong Stock Exchange in 1995 [1 p.68], and describes itself as a maker of 'world class ceramic tableware products' that it sells 'through agents and export to 40 countries above' [1 p.72]. It has no subsidiaries, so all figures here are company figures. The financial year ends on 30 June. The latest annual report in our corpus is FY2025 (year to 30-Jun-2025); FY2026 results were announced on DSE on 29-Oct-2026 but the audited statements are not yet in the corpus, so FY2026 figures here are the DSE-announced per-share figures and the nine-month statements to March 2026 [12] [2 p.5].

The decade splits in two. From FY2016 to FY2019 revenue rose from BDT 819m to BDT 1,071m, the highest in the ten years, with gross margin steady at 18-19% [7 p.19] [16]. Since then the company has been hit by Covid in FY2020, and from June 2023 by the disconnection of its natural gas line. Revenue fell to BDT 303m in FY2024, the lowest in the ten years (a figure the FY2024 auditor qualified against the VAT return [4 p.49]), and recovered to BDT 349m in FY2025 [1 p.22]. The kilns 'are all equipped with natural gas burners', and on grid electricity 'the temperature is not perfectly controlled and as a result a lot product is damaged during firing', in the company's words [1 p.72]. Exports, about a fifth of revenue in FY2021-FY2023, stopped: 'no export made this Financial Year' (FY2025) [1 p.82].

Business: one product, porcelain tableware, and a plant that lost pipeline gas in June 2023

What Monno sells. The company's objects cover 'ceramic wares, porcelain ware, table ware products, pottery, china and terra cotta, bricks, tiles, pipes etc.' [1 p.13], but in practice it reports one product: porcelain tableware, with capacity stated in million pieces on a two-to-three-shift basis [1 p.86]. The directors describe the positioning as 'premium tableware (porcelain, bone china, high-alumina hotel-ware)' and say the company has 'supplied our products to the best high-street retailers and departmental stores in Europe & America over the last 40 years as an OEM' [1 p.17] [1 p.18]. Local sales go through agents, dealers and company showrooms [4 p.25]. Revenue is booked when goods are dispatched, net of VAT [1 p.71].

The market. Citing the Bangladesh Ceramic Manufacturers & Exporters Association, the directors put national tableware capacity at 275.5m pieces a year and local consumption at about BDT 590 crore, with local makers supplying 98.7% of demand [1 p.14]. On the same page they give FY2024 tableware exports of Tk 514 crore (down 13.2%) and local tableware sales of Tk 756 crore (down 0.18%) [1 p.14]. Monno's FY2025 revenue of BDT 348.8m equals 5.9% of the BDT 590 crore local-consumption figure (derived; the two are not on the same basis). Raw materials are mostly imported: the directors say producers 'must import 80-90% of their raw materials', and in Monno's MD&A 'all raw materials for porcelain manufacturing needs to be imported' [1 p.16] [1 p.31].

Ten years in three phases. In FY2016-FY2019 revenue grew each year, to BDT 1,071m, and production reached 17.47m pieces in FY2019, 79.4% of the 22m-piece capacity [7 p.19] [8 p.57]. Covid cut FY2020 revenue to BDT 602m, and production was 13.40m pieces in both FY2020 and FY2021 [6 p.65] [5 p.78]. FY2022 brought a rebound to BDT 904m, with 15.27m pieces made (69.4%) and a revaluation of fixed assets at 31-Dec-2021 that added a BDT 944.0m surplus to equity [5 p.78] [1 p.78]. From FY2023 the gas problem dominates: production fell to 11.10m pieces in FY2023 and 3.50m in FY2024, the year after the line was cut [4 p.80]. The workforce fell from 1,996 at June 2022 to 580 at June 2024 and was 615 at June 2025 [5 p.78] [4 p.80] [1 p.87].

Gas: nil gas cost since FY2024, but volume and damaged product carried the cost instead

The gas line. Note 2.13 of the FY2025 accounts says the company 'made its products without any natural gas support from June 2023 to till now due disconnected gas line', using 'electricity from REB grid power and now using bottled LPG for furnace firing' [1 p.72]. It reports load-shedding of 'almost 60 - 70 hours per month' in note 2.13 and '70 - 80 hours per month' in the revenue note [1 p.72] [1 p.82]. After August 2024 the company says it 'communicated with Titas Gas and Ministry of Energy & Power', and that Titas 'further demand of Tk. 200,000,000.00 (Two crore) for reconnection from Monno Group' [1 p.72]. The figure and the words do not match (BDT 200,000,000 is 20 crore); we quote both as printed. The FY2025 auditor's emphasis of matter repeats the disconnection and states 'Management is in active discussion with Titas Gas and the Ministry of Energy & Power to restore the gas connection' [1 p.58].

What it did to the cost lines. Gas consumption in the conversion-cost note was BDT 34.6m (FY2021), BDT 58.0m (FY2022) and BDT 60.8m (FY2023), then nil in FY2024 and FY2025; electricity fell from BDT 33.9m (FY2023) to BDT 14.2m and BDT 14.9m [5 p.73] [4 p.75] [1 p.82]. Energy as booked therefore fell from 15.4% of revenue in FY2023 to 4.3% in FY2025 [16]. The note does not show a separate LPG line, so the cost of bottled gas is not visible in the filings we read. The cost of the disruption shows up instead in lost volume and in damaged product: the company sells damaged pieces as scrap, and those 'wastage sales' were BDT 80.5m in FY2024 (qualified by the FY2024 auditor [4 p.49]) and BDT 46.2m in FY2025, booked in other income [4 p.76] [1 p.84].

Status at the latest filing. The FY2025 directors' report lists 'Gas supply, export tie-up' among 'structural improvements' [1 p.13], while note 2.13 (going concern) of the financial statements says 'We are trying to reconnect our gas line as soon as possible' [1 p.72]. The nine-month statements to March 2026 show no gas line in conversion cost and electricity of BDT 9.4m [2 p.15]; the FY2025 notes show a BDT 8.49m bank guarantee to Titas Gas as a contingent asset and liability [1 p.86]. On 24-Jun-2025 a newspaper ran 'Monno Ceramic back to full-fledge production after a decade'; in reply to a DSE query the company said the report was the outlet's 'own desk report' and that it had no price-sensitive information [12]. We found no filing or DSE notice that confirms reconnection.

Revenue: all local in FY2025 after exports of BDT 128-148m a year stopped

Local versus export. In FY2021 local sales were BDT 552.2m, exports BDT 140.6m and a cash incentive BDT 14.1m; in FY2022 local BDT 755.7m and exports BDT 148.4m [5 p.72]. FY2023 local sales fell to BDT 485.2m with exports of BDT 127.7m; FY2024 local was BDT 302.0m and exports BDT 0.7m; FY2025 was all local at BDT 348.8m [4 p.74] [1 p.82]. Export share of revenue was 19.9%, 16.4% and 20.8% in FY2021-FY2023 [16]. Foreign exchange earned on an FOB basis was US$1.412m in FY2021, US$1.72m in FY2022 and US$33,065 in FY2024 [6 p.65] [5 p.78] [4 p.80]. The company links the loss of exports to the temperature problem: 'Due to temperature issue export product quality maintain is very difficult a result no export made this Financial Year' [1 p.82].

Volume and price. The filings give production, not pieces sold, so revenue per piece produced is only a rough indicator: BDT 52.7 in FY2021, BDT 59.2 in FY2022 and BDT 34.8 in FY2025 (derived) [16]. FY2024 (BDT 86.5) is distorted by stock drawdown: finished goods fell from BDT 51.4m to BDT 45.0m and work in process from BDT 179.1m to BDT 159.8m [4 p.74]. In FY2025 the opposite happened: work in process rose from BDT 159.8m to BDT 201.4m as production restarted [1 p.82].

FY2026 so far. Revenue for the nine months to March 2026 was BDT 285.9m against BDT 271.8m a year earlier (+5.2%), with BDT 6.5m of exports [2 p.15]. Quarterly EPS was BDT 0.25 (July-September 2025), BDT 0.06 (October-December) and BDT (0.07) (January-March 2026), per DSE [12]. For the third-quarter fall the company cited 'high inflation, geopolitical tensions, unfavorable weather conditions, the National Election, and extended Eid holidays' and higher interest rates [2 p.2]. The full-year FY2026 EPS announced on 29-Oct-2026 was BDT 0.09 [12], which implies a fourth-quarter loss of about BDT 0.15 a share (derived: 0.09 - 0.25 - 0.06 + 0.07) [16].

Line items: gross margin at a ten-year high in FY2025, finance cost at a ten-year high too

Cost of goods sold. Materials were 38.0% of revenue in FY2021 and 50.5% in FY2025; factory wages fell from 23.5% (FY2023) to 14.2% (FY2025) as headcount dropped; depreciation in conversion cost rose from 5.3% (FY2022) to 19.4% (FY2025) because the charge stayed at BDT 59-68m while revenue halved [16] [1 p.82]. Depreciation also rose after the 2021 revaluation; the revaluation reserve is reduced each year by depreciation on the revalued amount (BDT 17.9m in FY2025) [1 p.78]. Gross margin was 18-20% from FY2016 to FY2022, 14.9% in FY2023 (the lowest of the ten years), 15.1% in FY2024 and 24.0% in FY2025 (the highest) [16].

Operating expenses. Administrative plus selling expenses fell from BDT 86.9m (FY2016) to BDT 25.7m (FY2025) [7 p.19] [1 p.22]. Within FY2025 administrative expenses of BDT 21.8m, directors' emoluments were BDT 7.39m [1 p.83] [1 p.86]; the notes list BDT 4.8m of directors' remuneration and BDT 1.5m of incentive bonus within that total [1 p.86].

Finance cost. Finance cost rose from BDT 61.2m (FY2022) to BDT 86.2m (FY2023), BDT 96.7m (FY2024) and BDT 146.6m (FY2025), the highest of the ten years and 42.0% of revenue [16]. In FY2025 it was BDT 60.5m on the long-term loan, BDT 85.7m on short-term loans and BDT 0.4m of bank charges [1 p.83]. The loan notes show the interest added to the loan balances (BDT 60.5m to the long-term loan and BDT 85.7m to short-term borrowings), with principal repayments of BDT 3.36m and BDT 3.34m [1 p.78] [1 p.79]; the cash flow statement shows 'interest paid' of BDT 146.2m and a matching rise in borrowings in financing [1 p.66]. In the nine months to March 2026 finance cost was BDT 85.5m, of which BDT 76.2m on the long-term loan [2 p.17]. The chairman's statement says 'Finance costs will continue to increase until the Bank Loan repayments are cleared in full' [1 p.10].

Tax. FY2025 income tax expense was BDT 22.5m on profit before tax of BDT 28.6m, offset by a BDT 2.0m deferred tax credit [1 p.64]. The current-tax calculation in note 20 includes BDT 10.6m of tax on the capital gain from the share sale at 15% [1 p.80]. In the nine months to March 2026 a BDT 8.75m deferred tax credit was larger than profit before tax of BDT 0.5m, so net profit of BDT 9.1m came from the tax line [2 p.5].

Other income: a land gain, a share-sale gain and scrap sales carried profit before tax in FY2023-FY2025

The F17 sector checklist asks whether 'other income > operating profit'. For Monno it has been, in each of the last three years. Other income was BDT 210.9m in FY2023 (of which BDT 198.1m gain from land sale and BDT 12.8m export cash incentive), BDT 81.8m in FY2024 (BDT 80.5m wastage sale, qualified by the FY2024 auditor [4 p.49]) and BDT 118.5m in FY2025 (BDT 70.7m gain from share sale, BDT 46.2m wastage sale, BDT 1.6m rent) [4 p.76] [1 p.84]. Profit from operations less finance cost, the core result before other income, was BDT -49.4m, BDT -80.3m and BDT -88.5m in FY2023-FY2025 (derived) [16].

The share sale. Monno held BDT 112.54m of shares in Monno Fabrics Ltd.; the directors say the company 'sold its entire 9.79% stake in sister concern Monno Fabrics Ltd. in January 2025 to inject fresh funds into the ceramics business and settle liabilities of the company' [1 p.13]. Disposal proceeds in the cash flow were BDT 183.2m and the gain BDT 70.7m [1 p.66] [1 p.84]. The filing does not name the buyer. The directors' report also states 'During the year there was no realized extra-ordinary gain or loss' [1 p.20].

Nine months to March 2026. Other income fell to BDT 25.7m: BDT 13.2m from writing off the security deposit held for M/S Tung Chung Mech. Co. Ltd., BDT 7.1m of wastage sale, BDT 4.8m of rent and BDT 0.7m of export cash incentive [2 p.17]. The Tung Chung amount is the BDT 13,187,409 deposit 'carried forward from the FY 2013-14 which was received from M/S Tung Chung Mech. Co. Ltd. China against the supply of machinery', the subject of the FY2025 emphasis of matter [1 p.80] [1 p.58]. The core result for the nine months was BDT -25.2m (derived) [16].

Ratios: interest cover below 1x for three years and a 756-day cash cycle

Returns. Return on closing equity ranged from 0.1% to 3.6% over FY2016-FY2025, and was 0.3% in FY2025 [16]. Equity includes a revaluation reserve of BDT 2,346.9m at June 2025, 77.6% of total equity [1 p.77] [16]. Asset turnover fell from 0.34x (FY2019) to 0.07x (FY2025) as revenue fell and the 2021 revaluation lifted assets [16].

Leverage and liquidity. Printed bank borrowings were 0.18-0.38x equity over the ten years, highest in FY2025 at 0.38x [16]. That printed figure (BDT 1,161.2m) leaves out BDT 74.3m owed to Midas Finance; total borrowings on the balance sheet were BDT 1,235.5m at June 2025 and BDT 1,329.7m at March 2026 [1 p.78] [2 p.4]. The current ratio stayed between 1.12 and 1.34 [16], but current assets include BDT 395.5m of inter-company balances and BDT 368.9m of advances [1 p.63].

Working capital. Inventory days on cost of goods sold were 326 at June 2023, 593 at June 2024 and 622 at June 2025; receivable days on revenue rose from 101 to 248 [16]. The cash conversion cycle was 756 days at June 2025 [16]. Inventory of BDT 451.9m included BDT 201.4m of work in process and BDT 159.6m of raw materials [1 p.73].

Cash conversion. Cash from operations was BDT 10.0m (FY2021), BDT 76.6m (FY2022), BDT -111.8m (FY2023), BDT -6.3m (FY2024) and BDT -205.4m (FY2025), against positive net profit in every year [16]. In FY2025 the gap came from a BDT 111.5m rise in advances, BDT 43.6m paid to group companies, BDT 34.5m more inventory and the removal of the BDT 70.7m share-sale gain, which is an investing inflow [1 p.85]. In the nine months to March 2026 operating cash flow was BDT -2.0m [2 p.17]; DSE reports FY2026 operating cash flow of BDT 1.91 a share [12].

Balance sheet: a qualified audit over BDT 82.8m of aged receivables and BDT 350m of advances

Audit opinion. The FY2025 auditor, Aziz Halim Khair Choudhury (PKF AHKC), gave a qualified opinion dated 30-Sep-2025 [1 p.58] [1 p.62]. The basis paragraphs read: '1. As disclosed in Note 6 to the financial statements, the Company has not formulated a policy for recognizing or providing for expected credit losses on receivables, as required by IFRS 9, Financial Instruments. As at 30 June 2025, trade receivables include balances outstanding for periods ranging from 12 months to more than 36 months, amounting to BDT 8.28 crores. No allowance for credit losses has been recognized against these aged balances.' and '2. As referred to in Note 7.00 Advances, Deposits and Prepayments, the Company has reported a balance of BDT 35.04 Crores. No allowance for expected credit losses has been recognized in accordance with IFRS 9, Financial Instruments.' [1 p.58]. The emphasis of matter covers the 'long pending security deposit amount of BDT 1.31 crores from a foreign vendor' and the gas disconnection, and ends 'there is no material uncertainty regarding its ability to continue as a going concern' [1 p.58]. The FY2024 accounts, audited by A. Wahab & Co., also carried a qualified opinion [4 p.49] [12].

The FY2024 basis for qualified opinion has five paragraphs [4 p.49]. (1) On revenue: 'As disclosed in Note No. 23.00, the Company has reported sales of BDT. 30.27 crores in its financial statements. However, as per the VAT Return (Mushak-9.1), the reported sales amount is BDT 24.36 crores. This discrepancy indicates an excess sales amount of BDT 5.91 crores in the financial statements. As a result, the VAT payable on these excess sales approximately BDT 88 lakhs, has not been provisioned, causing an understatement of expenses in the financial statements for the year ended 30 June 2024.' The same paragraph says the auditor was 'unable to obtain sufficient appropriate audit evidence regarding the point of recognition for sales'. (2) 'As at 30 June 2024, trade receivables include balances outstanding for more than 36 months, amounting to BDT. 1.99 crores, for which no provision has been made in the financial statements.' (3) 'the Company reported wastage sales amounting to BDT 8.05 crores for the year ended 30 June 2024. The Company did not adhere to appropriate procedures for conducting these sales, and a significant portion of the transactions were carried out in cash which is non-compliance with the Income Tax Act.' (4) 'the company reported Inventory balance of BDT 41.74 crores. However, the Company has not provided a category-wise breakdown of inventory.' and the auditor was 'unable to confirm whether the inventory has been reported at the lower of cost and net realizable value'. (5) 'an extra tax charge of BDT 44.55 lakh imposed by the tax authority for the assessment year 2022-2023 has been adjusted against retained earnings instead of being recognized in the profit and loss account' [4 p.49]. The FY2024 revenue (BDT 302.7m) and wastage sales (BDT 80.5m) used in this note are the figures those paragraphs qualify; the company's response is on [4 p.25].

Receivables. Trade and other receivables of BDT 237.2m at June 2025 comprised export bills BDT 67.1m, duty drawback BDT 4.6m, cash incentive BDT 11.1m and local parties BDT 154.4m [1 p.73]. The ageing shows BDT 78.2m at 12-36 months and BDT 4.6m over 36 months, which is the BDT 8.28 crore in the qualification [1 p.73]. The export-bills balance was BDT 67.09m at both June 2024 and June 2025, with no additions or collections in FY2025 [1 p.73]. At March 2026 the company had booked a BDT 4.6m 'Provision for Credit Loss', equal to the duty-drawback balance [2 p.4] [2 p.16].

Advances. 'Advance against purchase/supplies/others' was BDT 343.5m at June 2025, up from BDT 239.4m at June 2024 and BDT 61.2m at June 2023 [1 p.74] [4 p.66], and the same BDT 343,505,899 at March 2026 [2 p.10]. The note does not name the suppliers. Total advances, deposits and prepayments of BDT 368.9m were 1.06x FY2025 revenue; the BDT 343.5m 'advance against purchase' line alone was 0.98x [16].

Debt. All loans are secured by a first charge on property, plant and equipment and personal guarantees of the directors; the lenders are Social Islami Bank (BDT 549.7m long-term), Midas Finance (BDT 74.3m) and, for short-term loans, Social Islami Bank (BDT 557.3m) and Mercantile Bank (BDT 63.1m) [1 p.78] [1 p.79]. In the half year to December 2025, BDT 629.5m of short-term borrowings was 'Reschedul and transfer to Long Tearm Loan' (as printed) [3 p.19]; at March 2026 the long-term loan was BDT 1,329.7m with no current portion shown [2 p.4]. Net debt was 0.40x equity at June 2025 and 0.43x at March 2026 [16]. There was 'no capital expenditure commitment' at 30-Jun-2025 [1 p.86].

Related parties: BDT 421m due from five group companies at March 2026, none with stated terms

Monno is one company in the Monno group. Note 36 lists the related-party balances at 30-Jun-2025 [1 p.85]. Receivable, shown as 'Inter Company Current Account' in current assets: Monno Bone China Ltd. BDT 141.42m (after BDT 36.62m added in the year), Monno Fabrics Ltd. BDT 104.33m (BDT 6.82m added), Monno Attire Ltd. BDT 92.44m, Monno Power Generation & Distribution Ltd. BDT 52.66m and Monno Agro & General Machinery Ltd. BDT 4.61m (BDT 0.20m added) [1 p.85] [1 p.75]. All five are labelled 'Associate com.' [1 p.85]. Payable: Monno Welfare Foundation, labelled 'Sponsor Director', BDT 388.61m; temporary loans from Monno Power Generation & Distribution Ltd. (BDT 21,515), Monno Bone China Ltd. (BDT 18,803) and Mrs. Afroza Khan, chairman (BDT 1.5m after BDT 0.4m repaid) [1 p.85].

Movements. In FY2024 the company received BDT 207.2m from Monno Welfare Foundation, which raised the payable from BDT 181.4m to BDT 388.6m [1 p.81] [1 p.84]. In FY2025 it paid BDT 43.6m to group companies (Monno Bone China BDT 36.62m, Monno Fabrics BDT 6.82m, Monno Agro & General Machinery BDT 0.20m) inside operating cash flow [1 p.85]. By March 2026 the receivable from Monno Bone China had risen to BDT 164.79m and from Monno Fabrics to BDT 106.63m, and the Monno Welfare Foundation payable had fallen to BDT 350.97m after a BDT 37.64m adjustment [2 p.10] [2 p.14]. The receivables from Monno Attire (BDT 92.44m) and Monno Power Generation & Distribution (BDT 52.66m) were unchanged from June 2024 to March 2026 [1 p.85] [2 p.10]. The notes do not state interest terms, due dates or security for any of these balances; the accounting-policy note says related-party transactions are 'in the normal course of business and on arms'length basis' [1 p.72].

Peers: Monno's finance cost is 42% of revenue, against 3.6-17.0% at three larger ceramic makers

We compare Monno with three listed ceramic makers, each from its latest annual report in our corpus, as printed. Shinepukur Ceramics is the closest by product: its stated vision is to be among 'the best Porcelain & Bone China Ceramic Table wares manufacturers in the World' [9 p.2]; its FY2025 annual report is not in the corpus, so its column is the year to June 2024. Fu-Wang Ceramic makes 'Floor Tiles and Glazed Wall Tiles' (year to June 2025) [10 p.47], and RAK Ceramics (Bangladesh) reports 'tiles and sanitaryware segments' (consolidated, year to December 2025) [11 p.36]. Basis notes: Monno's 'Profit from Operations' excludes its BDT 118.5m of other income; Shinepukur's 'Profit from Operations' and Fu-Wang's 'Operating Profit' include other income (BDT 6.9m and BDT 1.6m); Fu-Wang also prints an unlabelled BDT 28.8m line (note 25) between 'Operating Profit' and 'Net Profit before Financing & Tax', which is not in the operating figure used here; RAK's 'Profit/(loss) from operating activities' includes BDT 0.9m other income and excludes BDT 13.8m finance income [1 p.64] [9 p.99] [10 p.44] [11 p.84]. Finance cost is the gross printed line in each case; all four book WPPF below finance cost.

Audit opinions differ and are part of the comparison. Fu-Wang's FY2025 opinion is qualified, on a single matter: unclaimed dividends over three years of 'Tk. 5,439,778 which have to transfer to Capital Market Stabilization Fund (CMSF)' were not transferred, and it carries two emphasis-of-matter paragraphs: the last year's audited statements of the gratuity fund and WPPF were not found, and no tax assessment status was disclosed for the BDT 79.9m tax provision [10 p.38]. Shinepukur's FY2024 opinion is unmodified, with an emphasis of matter on 'effects of some post year end events on future financials' [9 p.95]. RAK's 2025 consolidated opinion is unmodified [11 p.82]. Monno's is qualified on receivable and advance impairment [1 p.58].

Within these four, Monno's gross margin (24.0%) is second to Fu-Wang's (26.2%) and above Shinepukur's and RAK's. Monno has the highest finance cost relative to revenue (42.0%, against 17.0% at Fu-Wang, 3.8% at Shinepukur and 3.6% at RAK) and the smallest revenue. Fu-Wang carries the most borrowing relative to equity (4.06x against Monno's 0.41x) [16]. On 29-Oct-2026 prices, the price-to-book multiples on the latest annual NAV were 0.88x (Monno), 0.66x (Shinepukur), 0.94x (Fu-Wang) and 1.59x (RAK) [15] [16].

Governance: a family-and-foundation sponsor group at 37%, and no dividend for FY2026

Ownership. At 30-Jun-2025 sponsors and directors held 14,120,200 shares (37.43%), institutions 13.31% and the general public 49.15% [1 p.77]. The named holdings were Monno Welfare Foundation (corporate director) 8,039,077 shares (21.31%), Mrs. Afroza Khanam (chairman) 4,255,980 (11.28%), and two holdings of 1,068,409 and 756,734 shares; the table labels Mrs. Huron Nahar Rashid as 'Managing Director' and Mr. Rasheed Mymunul Islam as 'Director', and swaps their share counts between the two year columns [1 p.77]. The board page names Mr. Rasheed Mymunul Islam as managing director [1 p.3], and a DSE notice puts Mrs. Huron Nahar Rashid's holding at 1,068,409 shares [12].

Changes since June 2025, from DSE notices [12]: Ms. Afroza Khanam gifted 2,600,000 shares to her spouse Mr. Moynul Islam outside the trading system (completed 16-Oct-2025); the board elected Mr. Moynul Islam chairman (18-Feb-2026); Mrs. Huron Nahar Rashid, a sponsor director, died on 01-Mar-2026 and her 1,068,409 shares were transmitted to Mrs. Afroza Khanam (completed 15-Apr-2026). The FY2025 report lists a six-member board including one independent director, Mr. Mohammad Ariful Islam, re-appointed for 04-Jul-2025 to 03-Jul-2028 subject to BSEC consent and shareholder approval [1 p.18] [1 p.19]. The FY2025 statements were signed by the managing director and the chairman; the auditor's fee for FY2026 is proposed at Tk 276,000 [1 p.63] [1 p.19].

Dividends. The rate was 5% stock (FY2016), 5% cash and 5% stock (FY2017), 30% stock (FY2018), 10% cash and 10% stock (FY2019), 5% cash and 5% stock (FY2020) [7 p.19], then 10% cash for each of FY2021-FY2023, 1% for FY2024 and 2% for FY2025 [1 p.7]. The FY2024 1% went 'to public shareholders other than Sponsors and/or Directors' (BDT 2.36m) [12]; the DSE moved the shares from 'A' to 'B' category from 30-Dec-2024 on that basis [12]. For FY2025 the board recommended 2% cash (BDT 7.54m, paid by 14-Jan-2026) [1 p.86] [12]. For FY2026 it recommended no dividend [12]. The five-year table prints cash dividend amounts of BDT 16.0m (FY2021), BDT 19.5m (FY2022) and BDT 21.7m (FY2023), below 10% of the BDT 377.2m paid-up capital, alongside payout ratios of 111%, 97% and 34% that do match 10% [1 p.7] [1 p.22]; the report does not explain the difference. The chairman's FY2025 statement says 'the Company does not at present have the desired level of liquidity to offer a dividend' [1 p.10].

What's next: the FY2026 annual report and AGM by 24-Dec-2026

FY2026 results (announced, passed). The board met on 28-Oct-2026 (for FY2025 it met on 24-Sep-2025) and DSE published the outcome on 29-Oct-2026: EPS BDT 0.09, NAV per share BDT 80.02 and operating cash flow BDT 1.91 a share for the year to 30-Jun-2026, no dividend, AGM on 24-Dec-2026 and record date 22-Nov-2026 [12]. The audited FY2026 statements, the auditor's opinion on them and the notes on gas, related parties and borrowings are not yet in our corpus.

Next quarter. The first-quarter board meetings were held on 14-Nov-2024 and 10-Nov-2025 [12]; by that precedent the Q1 FY2027 meeting would fall in mid-November 2026 (inferred). No board date had been notified on DSE at 1-Nov-2026. The second-quarter meetings were on 29-Jan-2025 and 28-Jan-2026, so late January 2027 (inferred) [12].

Plans without dates. The FY2025 report describes plans for stainless-steel cutlery and glassware, product depots in seven divisions, an overseas subsidiary with warehouse and showroom, newer kilns and a 2 MW rooftop solar project with IDCOL [1 p.17] [1 p.18]. None carries a date or a budget in the filing, and the company reported no capital expenditure commitment at 30-Jun-2025 [1 p.86]. Our sweep of DSE news from October 2024 to 1-Nov-2026 found no board approval of capital expenditure; the only board-approved business item was the Lenox vendor enlistment agreement (DSE, 15-Jul-2025) [12]. Capital work in progress rose from BDT 38.8m (June 2025) to BDT 115.7m (March 2026) without a stated project [2 p.9].

Trade. The directors cite US 'reciprocal tariffs of 20% ... imposed on Bangladeshi exports to the US in July 2025' [1 p.15]. Bangladesh's graduation from LDC status, which affects tariff preferences on exports, was moved from 24-Nov-2026 to 24-Nov-2029 by a UN General Assembly decision of 29-Oct-2026 [13] [14]. Export sales in the nine months to March 2026 were BDT 6.5m [2 p.15].

Risks: gas, finance cost and the quality of receivables, advances and group balances

Each risk below is tied to the line it moves, with the evidence in the filings. The company's own list of risks names 'Inconsistent/erratic Gas pressure, insufficient gas supply & increase in unit price of gas', taka depreciation, minimum-wage increases, raw-material bottlenecks and 'Withdrawal of Competitive/ preferential tariff facilities e.g. GSP' [1 p.21].

Key questions: gas, the audit, group balances and the source of profit

Market facts. At BDT 70.4 on 29-Oct-2026, MONNOCERA traded at 0.88x the announced June-2026 NAV of BDT 80.02 and at 782x the announced FY2026 EPS of BDT 0.09 [15] [12]. The 52-week range on weekly bars was BDT 67.3-112.0, with the high in the week of 10-May-2026 [15]. Of the BDT 80.14 FY2025 NAV per share, BDT 62.21 is the revaluation reserve (BDT 2,346.9m / 37.72m shares, derived) [1 p.77] [16].

FAQ

What does Monno Ceramic Industries make?

Porcelain and bone china tableware at Islampur, Dhamrai; capacity 25m pieces, FY2025 production 10.01m pieces [1 p.86] [1 p.17].

When does Monno Ceramic's financial year end?

30 June. FY2025 (to 30-Jun-2025) is the latest annual report in our corpus; FY2026 results were announced on 29-Oct-2026 [1 p.69] [12].

Why did Monno's sales fall after FY2022?

The company reports that its natural gas line was disconnected in June 2023, that firing on grid power damages product, and that exports stopped [1 p.72] [1 p.82].

Where did Monno's FY2025 profit come from?

Profit from operations was BDT 58.1m and finance cost BDT 146.6m; other income of BDT 118.5m (a BDT 70.7m share-sale gain and BDT 46.2m of scrap sales) produced profit before tax of BDT 28.6m [1 p.64] [1 p.84].

Is Monno's audit opinion qualified?

Yes, for FY2025: no expected-credit-loss allowance on BDT 8.28 crore of aged receivables or on BDT 35.04 crore of advances [1 p.58]. FY2024 was also qualified, including on revenue against the VAT return and on wastage sales [4 p.49].

Did Monno declare a dividend for FY2026?

No. The board recommended no dividend on 28-Oct-2026; the AGM is on 24-Dec-2026 [12].

How much do group companies owe Monno?

BDT 395.5m at 30-Jun-2025 and BDT 421.1m at 31-Mar-2026, from Monno Bone China, Monno Fabrics, Monno Attire, Monno Power Generation & Distribution and Monno Agro & General Machinery [1 p.85] [2 p.10].

Sources

1. Monno Ceramic Industries Ltd. Annual Report 2024-2025 (year to 30-Jun-2025) · link · accessed 2026-11-01
2. Monno Ceramic Industries Ltd. unaudited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-01
3. Monno Ceramic Industries Ltd. unaudited financial statements, six months to 31-Dec-2025 · link · accessed 2026-11-01
4. Monno Ceramic Industries Ltd. Annual Report 2023-2024 (year to 30-Jun-2024) · link · accessed 2026-11-01
5. Monno Ceramic Industries Ltd. Annual Report 2021-2022 (year to 30-Jun-2022) · link · accessed 2026-11-01
6. Monno Ceramic Industries Ltd. Annual Report 2020-2021 (year to 30-Jun-2021) · link · accessed 2026-11-01
7. Monno Ceramic Industries Ltd. Annual Report 2019-2020 (five-year data FY2016-FY2020) · link · accessed 2026-11-01
8. Monno Ceramic Industries Ltd. Annual Report 2018-2019 · link · accessed 2026-11-01
9. Shinepukur Ceramics Ltd. Annual Report 2023-24 (year to 30-Jun-2024) · link · accessed 2026-11-01
10. Fu-Wang Ceramic Industry Ltd. Annual Report 2024-25 (year to 30-Jun-2025) · link · accessed 2026-11-01
11. RAK Ceramics (Bangladesh) Ltd. Annual Report 2025 (year to 31-Dec-2025) · link · accessed 2026-11-01
12. Dhaka Stock Exchange news archive for MONNOCERA, Oct-2024 to Nov-2026 (results, dividends, board and sponsor notices) · link · accessed 2026-11-01
13. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
14. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-01
15. AnalystBro price data (TradingView feed): DSE daily, weekly and monthly bars to 29-Oct-2026 · link · accessed 2026-11-01
16. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01