Al-Madina Pharma offers 12pc dividend despite profit drop
FE REPORT | Wednesday, 8 October 2025
Al-Madina Pharmaceuticals, listed on the SME platform of the Dhaka Stock Exchange (DSE), announced a 12 per cent cash dividend for its general shareholders and a 1 per cent cash dividend for sponsor-directors for the fiscal year 2025 (FY25).
The board of directors made the dividend declaration at a meeting held on Monday, despite the company posting a 33 per cent year-on-year decline in profit.
The company reported a profit of Tk 11.83 million for the year ended June 2025, down from Tk 17.75 million in FY24.
Earnings per share (EPS) also dropped to Tk 0.58 in FY25 from Tk 0.87 in the previous fiscal year, according to a disclosure posted on the DSE's website on Tuesday.
Sponsor-directors currently hold 14.25 million shares, with a proposed dividend payment of Tk 1.42 million. General shareholders hold 6.15 million shares, with a proposed dividend payout of Tk 7.38 million.
Following the disclosure, the company's stock price plunged 7.31 per cent to Tk 44.4 on Tuesday.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, saw a significant drop to Tk 0.94 per share in FY25, down from Tk 2.50 in the previous year, due to higher payment to suppliers and lower collection from customers.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 20.61 per share for the year, up from Tk 20.39 in June 2024.
The company's annual general meeting will be held on December 30 and the record date is set for November 4.
Listed in 2023, the company had paid a 12 per cent cash dividend only to general shareholders in FY24. The company made a profit of Tk 25.1 million in FY23 and paid a 10 per cent cash dividend to all shareholders.
Al-Madina Pharma raised Tk 50 million under the fixed-price method in May 2023 for business expansion and to repay loans.
Incorporated in July 2006, Al-Madina Pharmaceuticals manufactures veterinary drugs and human drugs. Its factory is situated at Tongi in Gazipur.
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