Distillery Profits Drive Kero to Record Tk165 Crore

State-owned Carew & Company (Bangladesh) Limited has posted a record net profit of Tk165 crore in the 2025-26 financial year, despite continuing losses in its sugar production unit.

The nearly nine-decade-old enterprise, based in Darshana of Chuadanga, earned Tk165 crore 24 lakh 31 thousand in net profit from all its units during the financial year. It is the highest annual net profit in the company’s history.

The latest financial figures show that Carew has surpassed its previous profit record. In 2024-25, the company recorded a net profit of Tk129 crore 44 lakh 74 thousand. Its profit therefore increased by around Tk35 crore 80 lakh in a single year.

The sharp rise in overall earnings, however, masks a persistent weakness in the company’s traditional sugar business.

Carew’s sugar production unit incurred a projected loss of Tk60 crore 19 lakh 73 thousand in 2025-26. The unit had suffered a loss of Tk62 crore 35 lakh in the previous financial year. Although the loss narrowed slightly, sugar production continues to remain a major financial burden for the state-owned company.

The distillery unit was the biggest contributor to Carew’s latest profit. It generated Tk223 crore 79 lakh 32 thousand in profit during 2025-26, providing the financial strength needed to offset the substantial loss in sugar production.

Other business units also contributed to the company’s earnings. The organic fertiliser unit recorded a profit of Tk1 crore 47 lakh 84 thousand, while the commercial farm earned Tk1 crore 48 lakh 4 thousand. The Akandabaria unit made Tk7 lakh 62 thousand in profit, while the distillery medicine unit posted a profit of Tk3 lakh 79 thousand.

Carew’s recent performance also reflects a steady rise in its overall profitability. In 2023-24, the company’s net profit stood at Tk112 crore 7 lakh 91 thousand. The sugar division recorded a loss of Tk60 crore 33 lakh that year.

In 2024-25, net profit rose to Tk129 crore 44 lakh 74 thousand, while the sugar unit’s loss increased to Tk62 crore 35 lakh. In 2025-26, overall net profit climbed further to Tk165 crore 24 lakh 31 thousand, even as the sugar division continued to operate at a significant loss.

The figures highlight a striking contrast within the company. Over just two financial years, Carew’s net profit increased by more than Tk53 crore, while losses in its sugar operation remained around the Tk60 crore mark.

Industry insiders attribute the long-running losses in sugar production to several factors, including ageing machinery, the quality of sugarcane and a relatively low rate of sugar recovery. Higher production costs have made it difficult for the sugar unit to generate sufficient returns from the sale of its output.

Sugar production is also closely linked to the availability and quality of locally grown sugarcane. When recovery rates are low, a larger quantity of cane is required to produce the same amount of sugar, increasing the cost of production. The condition of processing equipment can also affect operational efficiency and recovery.

The distillery and other businesses, by contrast, have helped Carew maintain a strong financial position. The company’s diversified operations include distillery products, medicines, organic fertiliser and agricultural activities, allowing profitable units to compensate for weaknesses in sugar manufacturing.

Carew’s history dates back to 1938, when its sugar and distillery factory was established at Darshana. It began operations with a daily sugarcane crushing capacity of 1,000 tonnes and the ability to produce 18,000 proof litres of spirit. Over the decades, its operations expanded beyond sugar and distillery production to include medicines, agricultural farms and organic fertiliser.

The company’s Managing Director, Rabbir Hasan, said Carew had been able to earn higher profits from several of its units compared with the previous financial year. He also said the loss in the sugar industry had declined to some extent.

According to him, the company plans to take further steps to reduce losses in the sugar production unit while increasing its overall profitability.

Carew’s latest financial results therefore present two very different pictures. On one side, the company has achieved the highest net profit in its history, driven largely by its distillery business and supported by other profitable units. On the other, its sugar operation continues to require attention after years of substantial losses.

The challenge for Carew will now be to preserve the strong performance of its profitable units while addressing the structural problems affecting sugar production. Reducing production losses could strengthen the company’s financial position further and lessen its dependence on earnings from the distillery and other businesses.