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Reckitt Benckiser (Bangladesh), a publicly traded British multinational company, reported a stellar growth of over 67 per cent in its net profit in the January-March quarter of the year 2023 after the firm lowered its operating expenses significantly.
As per its unaudited financial statement, the company’s net profit jumped to Tk 15.21 crore in the first quarter of 2023, from Tk 9.09 crore in the same quarter last year.
The listed multinational said its operating expenses reduced significantly in the quarter under review, thanks to lower marketing costs, which created a positive impact on earnings.
Reckitt Benckiser has a wide array of products portfolio that includes Finish, Lysol, Veet, Dettol, Air Wick, Durex, Mortein, Strepsils, Vanish, Trix, Mr Brasso, DermiCool, Harpic, and others.
The company said although the cost of goods sold (COGS) surged in the Q1 this year compared to that in the same quarter last year the operating expenses reduced significantly due to lower marketing costs.
The company’s earnings per share (EPS) rose to Tk 32.18 for the January-March quarter of 2023 from Tk 19.25 for the same quarter of 2022, as per its financial report.
Its net operating cash flow per share (NOCFPS) was Tk 75.14 for the January-March quarter this year against Tk 95.43 for the same period last year.
The company’s net asset value (NAV) per share stood at Tk 208.98 as on March 31, this year, which was Tk 176.80 till December 31 last year.
The net operating cash flow per share reduced due mainly to the increase in supplier payments and tax payments, while the NAV per share increased because the current quarter profit was added to the retained earnings, driving an increase in the NAV per share, the company said.
Reckitt Benckiser (Bangladesh) is witnessing a continuous growth in net profit due to the growing usage of healthcare and hygiene products, fuelled by the awareness during the pandemic.
The company had a net profit of Tk 66 crore last year, Tk 80.81 crore in 2021, Tk 73.89 crore in 2020, and Tk 61.93 crore in 2019.
Reckitt Benckiser has been paying sound cash dividends over the years. But in 2022, it cut its cash dividend sharply to 980 per cent, the lowest since 2019.
The company disbursed a 1650 per cent cash dividend in 2021, the highest ever for any company listed on the Dhaka bourse.
The multinational company’s blockbuster brand is Dettol. Hand wash, soap, sanitiser, liquid disinfectant, and body wash are produced and marketed under this brand name. Its another key revenue driver is the Harpic.
Reckitt Benckiser’s Veet is one of the key depilatory brands in the country, which caters both female and male populations. Its pharmaceutical products, Strepsils and Moove, are also the key products manufactured and marketed.
Listed on the Dhaka Stock Exchange in 1987, Reckitt Benckiser shares closed at Tk 4,760.7 per share at the bourse’s trading floor on Tuesday.
General investors hold 5.99 per cent of Reckitt shares, while foreign investors own 2.78 per cent and institutional investors 4.50 per cent.
The Bangladesh government has a 3.77 per cent stake in the company, and the the remaining 82.96 per cent shares are owned by the company’s sponsors-directors.
