Berger Paints’ Q3 profit drops by 16 %

Berger Paints Bangladesh posted a 16 per cent year-on-year fall in its net profit in the third quarter (Oct-Dec’22) of its current financial year, thanks to higher cost of raw materials due to the devaluation of the domestic currency against the US dollar.

The company reported Tk 68.30 crore in in net profit in the October-December period of the financial year 2022-23 against the profit of Tk 81.24 crore in the same period last fiscal.

The listed company’s consolidated earnings per share (EPS) stood at Tk 14.73 for the Oct-Dec’22 against Tk 17.52 for the same period last year.

Meanwhile, its consolidated EPS stood at Tk 44.16 for the April-December period of 2022 against Tk 43.18 for the same period of 2021. In a filing at the Dhaka Stock Exchange (DSE), Berger Paints Bangladesh said despite significant growth in revenue during the April-December period, the same was not reflected in earnings due to higher cost of raw materials impacted by the currency devaluation in recent months.

Its net operating cash flow per share also decreased mainly due to an increase in suppliers’ payments for strategic inventory build-up, advance payment made to the bank for LCA’s dues, and also for higher payment of advance income tax at the import stage, the company stated.

Berger Paints shares declined by 0.31 per cent to close at Tk 1,723.60 per share on the DSE trading floor on Wednesday.