Advanced Chemical Industries (ACI) has registered a moderate year-on-year growth in consolidated earnings per share (EPS) for the fiscal 2022, mainly riding on a subsidiary.
The company's stand-alone EPS, however, fell marginally.
The growth in consolidated EPS was mainly supported by ACI Motors, while supply disruptions and the devaluation of local currency against US dollar were the main reasons behind the decline in stand-alone EPS, said Pradip Kar Chowdhury, chief financial officer at ACI.
A leading conglomerate, ACI imports around 50 per cent of the raw materials used in its production line.
It has reported consolidated net profit of Tk 893 million in the fiscal 2022, a 104.32 per cent rise from the previous fiscal year.
On the other hand, the company's consolidated EPS rose 9.41 per cent to Tk 5.23.
Explaining why the growth of the consolidated earnings per share varies with the consolidated net profit, Mr Chowdhury said all of ACI's 15 subsidiaries are not fully owned by the company.
Among the subsidiaries, ACI has controlling stake above 49 per cent in ACI Motors, considering the paid-up capital.
Due to a price appreciation, ACI Motors played a significant contribution to the net profit made by its mother company ACI.
Of the subsidiaries, ACI Formulations was also listed with the country's bourses.
ACI has reported a hefty growth in cash flow for the fiscal 2022, driven by the narrowing of the time for payment collections.
ACI markets a wide range of products-toiletries, home care, electrical items, electronics, mobile, edible oil etc-through subsidiaries including ACI Formulations, ACI Logistics, ACI Foods, ACI Salt, ACI Edible Oils, and ACI Biotech.
The company has seen a marginal growth in the public consumption of the products, said Mr Chowdhury, adding that around 10 per cent increase in product prices was not significant compared to product price increase by other companies.
Meanwhile, the ACI board of directors has recommended 50 per cent cash and 5 per cent stock dividends for the fiscal 2022. Last year, investors received 65 per cent cash dividend.
Even after the disclosure, the stock remained stuck at the floor price-Tk 273.20 -- on the Dhaka Stock Exchange on Thursday.
In a clarification, ACI said the dividend has been recommended out of accumulated profits.
Bonus shares have been recommended so the company can use retained earnings as working capital for ongoing operations, according to a disclosure on the DSE website.
© 2024 - All Rights with The Financial Express
