Berger Paints Bangladesh has posted an impressive 594 per cent increase in its first quarter (Q1) profit compared to the same quarter last year thanks to higher revenue and reduction of corporate tax rate.
The leading paints maker has reported consolidated revenue of Tk 5.25 billion for the first quarter ended on June 30, 2021 as against revenue of Tk 2.08 billion in the same period of the previous year.
The multinational company has also reported net profit of Tk 746.21 million in April-June, 2021 quarter, as against Tk 107.58 million in the same quarter a year earlier.
In a filing with Dhaka Stock Exchange (DSE) on Tuesday, the company said its consolidated earnings per share (EPS) increased to Tk 16.09 for April-June, 2021, up by a whopping 594 per cent, from Tk 2.32 in the corresponding period.
The company has also reported its consolidated net operating cash flow per share (NOCFPS) of Tk 1.24 for April-June 2021 as against negative Tk 10.34 for April-June 2020.
The consolidated net asset value (NAV) per share was Tk 248.87 as on June 30, 2021 and Tk 232.78 as on March 31, 2021.
The company also informed that EPS for first quarter ended 30 June, 2021 increased significantly mainly due to higher revenue compared to same period of previous year. In April-June, 2020 quarter was heavily impacted by countrywide lockdown.
Reduction of tax rate from 25 per cent to 22.5 per cent as per Finance Act 2021 is another reason for the increase of earnings per share, said the company.
The government slashed corporate tax rates for both listed and non-listed companies by 2.5 percentage points for the current fiscal year, other than banks, non-bank financial institutions, mobile phone operators and tobacco companies.
The net operating cash flow per share (NOCFPS) improved mainly because of higher revenue and lower operational expenses compared to revenue growth.
Each share of the company, which was listed on the DSE in 2006, closed at Tk 1,800.30 on Tuesday, gaining 1.15 per cent over the previous day.
The company's shares traded between Tk 1,308.60 and Tk 1,980 in the last one year.
Berger Paints has recommended a 375 per cent cash dividend for the year ended on March 31, 2021. The annual general meeting will be held on October 6. In 2020, the company provided a 295 per cent cash dividend.
The company's paid-up capital is Tk 463.78 million and authorised capital is Tk 1.0 billion, while the total number of securities is 46.37 million.
The sponsor-directors own 95 per cent stake in the company, while institutional investors own 3.42 per cent, foreign investors 0.14 per cent and the general public 1.44 per cent as on May 31, 2021, the DSE data showed.
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