Berger Paints reported a slight year-on-year decline in profit - by 2.70 per cent - to Tk 1.49 billion in the first six months of FY26, as the cost of sales increased due to currency devaluation.
According to a disclosure on Thursday, the market leader in the paint industry, holding a 50 per cent market share, managed to boost sales moderately by 3.56 per cent year-on-year in April-September.
However, the cost of sales rose by 5.83 per cent to Tk 9.17 billion during the period. The cost of goods sold increased from Tk 67.30 per Tk 100 of revenue to Tk 68.77 per Tk 100 of revenue in the period under review.
The company said it sources most of its raw materials from abroad. Hence, currency devaluation drove up import costs.
Berger earned more than Tk 12 from every Tk 100 of sales in the same period of the previous year, but this was reduced t]o Tk 11.10 per Tk 100 of sales in April-September this year.
The company reduced its finance cost this year but earned less from investments.
In addition, it paid higher tax for the six months to September, as the government increased the company's effective tax rate by 2.25 percentage points.
In the second quarter (July-September), profit rose 11.24 per cent year-on-year to Tk 0.63 billion.
The company's cash generation capacity also improved during the six-month period.
Meanwhile, Berger's stock price edged up 0.18 per cent to Tk 1,425 per share on Thursday on the Dhaka Stock Exchange.
Annual performance
Berger's annual profit rose 3.76 per cent year-on-year to Tk 3.37 billion in FY25 (April-March).
The company declared a 525 per cent cash dividend for FY25, higher than the 500 per cent cash dividend paid for the year before.
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