ACI declares 90pc dividend despite losses

Record date is December 1

FE REPORT | Wednesday, 11 November 2020

Advanced Chemical Industries (ACI) Ltd has decided to pay 80 percent cash and 10 percent stock dividends for the year ended on June 30, 2020, despite incurring a loss of Tk18.45 per share (consolidated).
ACI officials said the dividend is being provided from the retained earnings of the company and bonus shares have been recommended for utilising the retained earnings as capital for ongoing operations.
The annual general meeting (AGM) will be held on December 24 at 11:30am through digital platform. The record date is on December 1.
The company has reported consolidated earnings per share (EPS) of Tk 18.45 in the negative, consolidated net asset value (NAV) per share of Tk 137.67 and consolidated net operating cash flow per share (NOCFPS) of Tk 82.79 for the year ended on June 30, 2020 as against Tk 13.51 in negative, Tk 166.95 and Tk 25.67 in negative respectively for the same period of the previous year.
However, the ACI's standalone EPS stood at Tk 29.96, NAV per share of Tk 268.79 and NOCFPS of Tk 78.30 for the year ended on June 30, 2020 as against Tk 9.26, Tk 249.64 and Tk 25.44 respectively for the same period of the previous year.
A high official of ACI said that the ACI Logistic Limited's supermarket chain Shwapno is facing huge losses and owe a huge amount of loans which affected the company's consolidated earnings.
The company has also disclosed (un-audited) July-September 2020 quarterly financial statements. As per the July-September 2020, consolidated EPS was Tk 1.69 for as against negative Tk 5.21 for July-September 2019.
Each share of the company, which was listed on the DSE in 1976, closed at Tk 262.80 on Tuesday, soaring 3.34 per cent over the previous session.
In 2019, the company disbursed 100 per cent cash and 15 per cent stock dividend despite losses Tk 13.51 per share.
The company's paid-up capital is Tk 573.73 million and authorised capital is Tk 1.50 billion while total number of securities is 57.37 million.
The sponsor-directors own 35.28 per cent stake in the company, while the institutional investors own 37.61 per cent and the general public 27.11 per cent as on September 30, 2020, the DSE data shows.
ACI Limited, a legacy of British multinational Imperial Chemical Industries, came under the control of local entrepreneurs in 1992 following a divestment. It was renamed as the ACI Ltd from the ICI Bangladesh Ltd.
ACI is one of the largest conglomerates in Bangladesh with a multinational heritage operates across the country through its four diversified strategic business units.

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