Carew’s distillery profit crosses Tk200cr amid sales boom

With the latest year’s profit, retained earnings from the distillery business are expected to rise to around Tk1,500 crore, based on the latest available report for 2024-25.

The growth in Carew’s sales and profits has largely been driven by the government’s decision in 2021 to restrict imports of foreign liquor in an effort to curb tax evasion. The move increased demand for locally produced alcohol, benefiting the state-owned company, according to officials.

With the FY26 figures, Carew’s distillery unit generated more than Tk400 crore in gross revenue for the fourth consecutive year and more than Tk100 crore in net profit for the fifth consecutive year, according to the company’s financial reports.

Carew’s Managing Director Rabbik Hassan told The Business Standard, “Due to growing sales amid a surge in demand, the company’s profit is gradually increasing.”

“Despite rising profitability in the distillery unit, the sugar unit continues to incur losses as recovery rates are not improving. Carew’s sugar unit incurred a loss of around Tk60 crore in FY26, but revenue in other business segments – such as the commercial farm and bio-fertiliser units – is growing.”

“The second sugar-producing unit, set up with an investment of around Tk100 crore, has recently come into operation, giving us hope to stop the bleeding in the sugar division. If we can run this unit at full capacity, losses will decline,” he added.

According to its annual report for FY25, Carew’s distillery unit posted a profit before tax of Tk190 crore and paid Tk32 crore in corporate tax, leaving a net profit of Tk158 crore. Its sugar unit incurred a loss, so it paid no corporate tax on that business.

In addition to corporate tax, Carew pays excise duty, value-added tax, RDF and surcharge to the government.

In its consolidated financial statements covering other business segments, Carew reported sales or revenue of Tk499 crore and a net profit of Tk97 crore in FY25. The net profit was lower after accounting for losses from the sugar unit.

Sales soaring

According to officials, sales from Carew’s sugar unit stood at around Tk30 crore in FY26, while distillery sales were around Tk490 crore.

Sales from the sugar unit remained almost flat, while the distillery unit recorded 10% growth from Tk444 crore in FY25.

Revenue from its other business segments, excluding sugar and distillery operations, has yet to be finalised as the financial audit is still under way.

Carew and Company (Bangladesh), established in 1938 and nationalised in 1972, primarily operates a sugar mill and also runs a licensed distillery that produces locally made alcohol from sugar molasses in Bangladesh. The company is based in Darshana.

It also produces bio-fertiliser from crushed sugar cane and operates commercial farms and a pharmaceutical unit.