Berger Paints sees 593% profit hike in Q1

Despite the adversities induced by the Covid-19 pandemic, the net profit of Berger Paints Bangladesh soared 593 per cent to stand at Tk 74.62 crore in the first quarter (April-June) of current year which was Tk 10.75 crore in the same period of the previous year.

The company’s earnings per share (EPS) also rose 593 per cent to stand at Tk 16.09 during the period, which was Tk 2.31 in the same period of the previous quarter.

The company’s net revenue increased 152.65 per cent to Tk 525.50 crore in the Q1, which was Tk 207.99 crore in the same period of the previous year.

“Profit is as usual. As the last year was marred with lockdown, the comparison indices are higher this year. Some cost control and tax reduction measures have also impacted the earnings,” Khandker Abu Jafar Sadique, company secretary of Berger Paints, told The Business Post.

Berger disbursed 375 per cent cash dividend for the year ended on March 31, 2021, while 295 per cent cash dividend for 2020 and 250 per cent for 2019.

Recently, Berger Paints signed an agreement with Promat Fire and Insulation Private Ltd, a leading fire protective coating supplier, in order to launch fire retardant painting solutions in Bangladesh.

As a result, the multinational paint maker now can import, produce and distribute fire intumescent products in Bangladesh.

On Tuesday, the share price of Berger increased Tk 20.50 to Tk 1,800. The share price fluctuated from Tk 1,309 to Tk 1980 in the last one year.

Berger Paints Bangladesh was listed on the Dhaka Stock Exchange in 2006. The company belongs to “A” category. Its paid-up capital is Tk 46 crore.