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The Peninsula Chittagong Limited, a Chattogram-based four-star hotel company, declared a 2.50 per cent cash dividend for its shareholders for the fiscal year 2021-22, the lowest since its listing in 2014.
Though the hospitality services provider’s revenue increased in the year, its financial expenses multiplied meantime, lowering its profit as well.
The company’s board of directors recommended a 2.50 per cent cash dividend for the year ended June 2022, said a Dhaka Stock Exchange filing on Tuesday.
In the two previous fiscals, it had disbursed a 10 per cent cash dividend for each.
The company that went public in 2014 disbursed a 5 per cent cash dividend in 2016, second lowest to that of in FY22.
The company is scheduled to hold its annual general meeting (AGM) on December 19 next, and the record date is fixed as November 14 this year.
The company reported earnings per share (EPS) of Tk 0.19 for FY22 versus Tk 0.41 in the previous year. The company logged a net profit of Tk 2.25 crore in FY22 against Tk 4.87 crore in FY21.
The hospitality company’s revenue surged by 22.65 per cent on a year-on-year basis in FY22 while its administrative expenditures, cost of goods sold, and selling expenditures went up by 27.93 per cent, 45.45 per cent, and 37.47 per cent respectively.
The product and services costs soared worldwide in recent months, but the company could not raise the prices of food, accommodation, and services it provided meantime, pushing up its operating costs, the DSE disclosure read.
In a subsequent effect, its net profit plummeted as much as 52.55 per cent on a year-on-year basis.
The company reported a net asset value (NAV) per share of Tk 29.47 and net operating cash flow per share (NOCFPS) of Tk 0.30 for the FY22 against Tk 30.28 and Tk 0.93 respectively for the previous year.
The company said its NOCPS decreased by 67.22 per cent from that of the previous year as its cash payment to suppliers went up by 66.69 per cent and the expenses for administrative, selling, and distribution operations jumped by 107.30 per cent.
The company’s revenue is generated mainly from the hotel business, while a significant portion comes from the interest on bank fixed deposits.
The stock price of Peninsula Chittagong Limited fell by 13.07 per cent to Tk 28.60 per share on the trading floor of the DSE on Tuesday. Due to its earnings disclosure, no floor price was imposed on its share trading on that day.
With a market capitalisation of Tk 390 crore it has a paid-up capital base of Tk 118 crore and a surplus reserve of Tk 135 crore.
