Gemini Sea Foods suffered a big jolt to become the top loser on the Dhaka Stock Exchange yesterday after it declared 40 per cent dividend as records show an impressive 17 times year-on-year growth in profits in the year ending June.
The company recommended 10 percent cash and 40 per cent stock dividends, the highest in five years since 2017.
The pioneer shrimp exporter witnessed a turning around from a massive decline in business during the pandemic in 2020 when it incurred a loss of Tk 46.10 million. Exports rebounded a bit leading to only 5 per cent cash dividend the next year.
As the pandemic is on the wane, new orders are pouring in amid a rising demand for shrimp in the global market, said AFM Nazrul Islam, company secretary of Gemini Sea Foods.
A stronger dollar against taka and cash incentives by the government against exports also helped attain the remarkable profit growth.
Despite the stunning performance, the stock was the day's top loser yesterday, as the share price plunged by 14.19 per cent or Tk 84.20 to close at Tk 509.20.
Gemini's shares already skyrocketed before the dividend declaration amid much hype, and that might be the reason behind the price erosion, said a merchant banker, requesting anonymity.
Before the dividend declaration, the stock jumped 94 per cent or Tk 287 in just two months.
Currently, Gemini is a 100 per cent export-oriented company, but it aims to expand into the local market soon, said Mr Islam.
The company plans to add a new line of frozen food as the sector is growing fast in Bangladesh. It wants to produce chicken nuggets, sausage, meatballs, fish-balls, shrimp-balls, fish finger, paratha and other food items to penetrate the domestic market.
Gemini was the first exporter of certified organic shrimps to EU retailers in 2008. It now exports quality products to the USA, Canada, UK, Germany, Denmark, the Netherlands, Belgium and Russia.
The company's paid-up capital is Tk 46.96 million, authorised capital is Tk 400 million and total number of securities 4.69 million.
Earnings from shrimp exports witnessed a 24 per cent growth to $407.25 million in the last fiscal year, according to the Export Promotion Bureau.
However, exports in the third quarter from July-September this year declined 18 per cent year-on-year to $100.10 million as major export destinations have been facing a deepening economic crisis due to the Russia-Ukraine war.
There are 162 fish processing plants in the country, out of which 78 are approved by the Bangladesh government and 66 by the European Union.
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