Reckitt Benckiser (Bangladesh) secured an 8.64 per cent year-on-year growth in profit to Tk 817 million in 2025, supported by higher sales and a sharp decline in finance costs.
Earnings per share (EPS) of the UK-based multinational firm that sells health and hygiene-related products jumped to Tk 172.93 in 2025 from Tk 159.17 the year before, according to price-sensitive information published on Thursday.
Although the company has yet to disclose its full-year revenue, its nine-month sales grew 7 per cent year-on-year to Tk 4.30 billion through September 2025, indicating steady demand for its core hygiene and health products.
Another factor that boosted profits was a substantial reduction in finance expenses following the repayment of high-cost short-term loans worth Tk 69.32 million. As a result, finance costs dropped 45 per cent to Tk 33 million during the nine-month period.
Market insiders said the performance is notable given the challenging macroeconomic environment marked by high inflation and subdued consumer spending, which has weighed on many domestic firms.
Despite higher earnings, the company's board recommended a sharply lower cash dividend of 1,730 per cent for 2025, compared to 3,330 per cent paid the previous year.
The 2024 dividend payout was the highest ever since its stock market listing and the second-highest dividend for any listed firm in Bangladesh's stock market history, according to market operators.
The board of the company approved the audited financial statements and recommended a dividend for the year at a meeting on Thursday.
Investors will get Tk 173 per share in cash dividends for 2025 as against earnings of Tk 172.93 per share, meaning the company will distribute all of its annual profit.
Sponsor-directors, who jointly hold 82.96 per cent of the company's shares, are expected to receive the bulk of the dividend amount.
Due to the lower dividend declaration, the company's dividend yield will come down to 4.99 per cent in 2025, from an all-time high of 8.43 per cent the year before.
Net operating cash flow per share rose sharply to Tk 170.67 for the year from Tk 22.55 in the previous year, reflecting stronger cash generation.
The company attributed the improvement to the absence of royalty payments in 2025, after settling Tk 756 million in outstanding dues over the previous four years to Reckitt Benckiser Health Ltd in June 2024.
Meanwhile, the company's stock slipped marginally-0.41 per cent-to Tk 3,467 per share on Thursday, although it remained the most-valued stock in the market.
The company will hold an annual general meeting (AGM) on June 29. The record date is set for May 21.
First quarter performance
The company's first-quarter profit, however, fell 28 per cent year-on-year to Tk 110 million in January-March this year, due to lower sales amid fresh macroeconomic challenges.
Its sales dropped 9.5 per cent year-on-year to Tk 1.33 billion. Earnings per share declined to Tk 23.26 from Tk 32.45 year-on-year in the quarter to March.
The company had experienced strong growth during the COVID-19 period, when demand for hygiene products surged. However, sales momentum has slowed in the post-pandemic environment.
Its flagship brands, including Dettol and Harpic, continue to dominate the hygiene segment, though demand has moderated compared to pandemic peaks.
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