Home ›› 25 Jan 2023 ›› Front
Bangladesh Export Import Company (Beximco) Limited has joined the club of companies that made profits of Tk 1,000 crore, taking the number of such companies in the country’s capital market to six.
The number of such companies was five last year. Of those, three are local and two are multinational – Grameenphone, Walton Hi-Tech Industries, Square Pharmaceuticals, United Power, and British American Tobacco (BAT) Bangladesh.
Beximco recently joined the Tk 1,000 crore club on the back of the momentum created for its products during the Covid-19 pandemic, market insiders said.
The six companies formed the league with an eye-popping net profit in the fiscal year 2021-22 and the calendar year 2021 when every industry worldwide took a huge hit from the pandemic, which resulted in supply chain disruptions, a global economic slowdown, and eco-political issues.
Beximco
Beximco, a sister concern of the country’s leading conglomerate BEXIMCO Group, doubled its profits in the 2021-22 fiscal year to Tk 1,257 crore from Tk 663 crore a year ago.
Against each share having a face value of Tk 10, the publicly traded company earned Tk 14.32 in profit (earnings per share), which was Tk 7.53 in the previous fiscal year.
Beximco paid 30 per cent, Tk 3, cash dividends per share for FY22 while the company’s net asset value per share stood at Tk 91.19 in June 2022.
“Domestic sales and exports grew substantially in FY22 year-on-year. We expect the momentum to continue. Pre-tax profits of the company increased substantially compared to FY21 due to higher revenue, the introduction of new technologies, investments in upgradation, and economies of scale,” ASF Rahman, chairman of BEXIMCO, said in the latest annual report.
He also said with improvements in the Covid-19 situation, the demand for personal protective equipment (PPE) has reduced substantially.
“We have ventured into the regular use of PPE to continue supply to customers in the US and other destinations. We are also exploring other markets, and discussions with potential customers are at an advanced stage.”
Grameenphone
Multinational company Grameenphone is the country’s largest mobile phone operator and also the top firm in terms of market capitalisation. Its net profit dropped by 8.22 per cent or Tk 305.8 crore to Tk 3,413 crore in 2021 from Tk 3,719 crore in the previous year.
The publicly traded company’s earnings per share based on comprehensive income dropped to Tk 25.28 in 2021 from Tk 27.54 in 2020. It disbursed 125 per cent interim cash dividend for 2021, taking the total to 250 per cent for the entire year.
Yasir Azman, chief executive officer of Grameenphone, said the ongoing pandemic had brought about several hurdles in 2021 as Bangladesh faced its highest wave of Covid-19, followed by lockdowns.
“The resilience of our employees, partners, stakeholders, and local communities has enabled us to continue providing seamless connectivity to our customers,” he said.
Norway’s Telenor holds 55.8 per cent of Grameenphone shares. Local firm Grameen Telecom has 34.2 per cent stake in the company while the remaining 10 per cent is in the hands of institutional and general investors.
Square Pharmaceuticals
It is the country’s leading drug maker and a subsidiary of the Square Group conglomerate. Its net profit stood at Tk 1,642 crore in FY22, which was Tk 1,474 crore in the previous financial year.
It is the second biggest profit-making company among all listed firms. It witnessed bumper sales last year due to the higher demand for hygienic products in both local and foreign markets due to the pandemic.
Square Pharmaceuticals witnessed 12.58 per cent year-on-year surge in export receipts in the fiscal year 2021–22, thanks to policy support and the incorporation of tech-savvy machinery to produce quality drugs. Besides, the inclusion of anti-Covid drugs in the export basket also played a key role in increasing its export earnings.
The export receipts of the publicly traded company stood at Tk 170 crore in the last fiscal year, up from Tk 151 crore in the year before.
“We have incorporated modern technologies, including machine learning, artificial intelligence, and biotechnology, to fortify our foothold both in domestic and global markets,” the company said in its latest annual report.
Besides, time-bound policy support is a must to let the country’s drug makers compete in the global market, it said.
Square medicines are now available in pharmacies in over 45 countries, according to the drug maker, while it is trying to grab more slices of the global market.
The company’s consolidated revenue from operations surged by 13.81 per cent to Tk 6,641 crore in FY22 from Tk 5,835 crore in the previous fiscal year.
Its earnings per share (EPS) stood at Tk 20.51 at the end of the fiscal year 2021–22 from Tk 17.99 in the previous year. The board of directors paid 100 per cent cash dividend for the year ending in June 2022, the highest in the company’s history.
Tapan Chowdhury, managing director of Square Pharmaceuticals, dedicated the success to the employees who worked hard even in tough times like the pandemic and the Russia-Ukraine war.
The ongoing global economic turbulence created many challenges, including currency crises, oil price hikes, and food crises, consequently causing a rise in production costs for drug makers, he added.
Walton Hi-Tech Industries
It is a local electronics and home appliance giant that offers a range of products, such as TV, refrigerator, and air-conditioner. Its net profit dropped by 25.81 per cent to Tk 1,216 crore in 2021 from Tk 1,639 crore in the previous year.
The annual EPS declined to Tk 40.16 in the 2021-22 fiscal year from Tk 54.21 in the previous year. The company paid its shareholders Tk 25 in cash dividend against each share in FY22 while sponsors and directors got Tk 15 per share.
Golam Murshed, managing director of Walton, said in the latest annual report that despite multi-directional global challenges, including but not limited to skyrocketing material and shipping costs, leading to a drastic upward shift in product costs and the economic turmoil at the same time resulting in a visible reduction in disposable income at the consumer level, Walton Hi-Tech Industries has been able to achieve a sustainable net profit in the year under review.
Walton witnessed a massive setback in its growth as it posted a loss of Tk 46 crore in the first quarter of FY23. The company said it had suffered losses in the just-concluded quarter because of a steep rise in its production costs and other expenses, triggered by the soaring raw material prices in the global market amid the Russia-Ukraine war. The rising value of the dollar against the taka also affected its earnings.
The publicly traded large-cap firm posted Tk 281 crore in net profit in the first quarter of FY22.
United Power
United Power Generation and Distribution Company, an independent power producer, made Tk 1,015 crore in net profit in FY22, which was 8.64 per cent less than Tk 1,111 crore in FY21.
The Russia-Ukraine war has led to global economic uncertainties, energy supply shortages, and significant price volatility. Spending behind oil purchases rose significantly due to the rapid devaluation of the local currency, said the company in its latest annual report.
It paid 170 per cent cash dividend to shareholders for FY22.
BAT Bangladesh
BAT Bangladesh, a multinational tobacco product manufacturer, posted a net profit of Tk 1,497 crore in 2021, a 37.47 per cent rise from Tk 1,089 crore recorded in 2020.
“During the year, we remained focused on our fundamentals of delivering high-quality products through a balanced portfolio approach to our consumers, launching new products, and ensuring we fulfil our supply and trade commitments. Amid the disruptions, we focused on securing our route to market,” Amun Mustafiz, finance director at BAT Bangladesh, said in the latest annual report.
Despite the hike in material prices due to supply and freight constraints as well as costs expended for employee health and safety and supporting volume growth, the company’s operating expenses increased by only about 15 per cent, which was the outcome of various companywide efficiency and cost-saving initiatives, he said.
BAT Bangladesh manufactures tobacco products, namely Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag, and Hollywood. It got listed on the Dhaka Stock Exchange in 1977.
The company has its head office in Dhaka while its cigarette factories are in Dhaka and Savar. There is a green leaf threshing plant in Kushtia and a green leaf redrying plant in Manikganj.
