State-run food firms’ earnings see biggest dip

The listed state-run food and allied companies took a big knock in their earnings during the January-March of FY22 quarter (Q3).

Out of listed three companies, National Tea Company (NTC) suffered most as its third-quarter earnings went into negative further year-on-year.

Its earnings per share (EPS) stood negative at Tk 39.78 in Q3 of FY22, down from negative Tk 34.32 in the same period a year earlier. In the last three years, the company continued to incur losses. During the period, Zeal Bangla Sugar Mills Limited reported negative EPS at Tk 9.44 from negative Tk 10.27. Likewise, Shyampur Sugar Mills Limited’s negative EPS was Tk 17.60 from negative Tk 28.48.

Zeal Bangla Sugar Mills Company Secretary Abdul Gofur Miah said, “It is not possible to recover losses solely by producing sugar. Besides, the company runs with obsolete machinery.”

In sharp contrast, the share prices of those companies increased sharply on the Dhaka Stock Exchange.

During the period, NTC share price gained 42 per cent, Zeal Bangla Sugar Mills share rose 66 per cent, and Shyampur Sugar Mills share was up 54 per cent.

Among other listed private firms in the sector, 12 companies saw earnings per share rise during the third quarter. And the earnings of six companies decreased. Emerald Oil has not disclosed any earnings.

However, there are two multinational companies listed in this sector on the capital market. They reported second-quarter (April-June of FY22).

During the period, British American Tobacco Bangladesh Ltd EPS increased 4.66 per cent, while Unilever Bangladesh’s EPS increased 78.66 percent.

Except BATBC and Unilever Bangladesh, all companies will declare dividends to shareholders within the next one to two months after publishing their final financial reports.