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Berger Paints' profit surpassed Tk 3 billion for the year ended in March this year despite macroeconomic adversities and costlier raw materials.
The multinational company, which takes up over half of the country's paint market, had its consolidated profit rise by 3.4 per cent to Tk 3.01 billion in the year through March, compared to the previous year, according to a disclosure on Wednesday.
The global prices of raw materials had been through slight corrections in the recent months while increased selling prices helped the paint maker maintain a profit growth.
Customer preferences for Berger products and the ability to pass on a portion of the soaring costs to buyers by increasing paint prices were major advantages that the company took while navigating a challenging business environment, said an official requesting not to be named.
The company could not achieve a double-digit profit growth as it expected for the increase in the prices of raw materials and high import costs driven by a stronger dollar, he said.
The company did not disclose its annual sales revenue for the year ended in March. However, its nine-month sales revenue was Tk 18.68 billion.
The annual sales revenue until March 2022 was Tk 21.97 billion.
The board of directors of the company has recommended 400 per cent cash dividend for the financial year until the end of March as it did for the previous year.
To determine eligible shareholders for the dividend, the company has set June 26 as the record date. The final approval of the dividend will come at an annual general meeting (AGM) scheduled for August 22.
To meet the growing domestic demand for paints, Berger Paints has decided to invest Tk 4.80 billion to establish a factory in Bangabandhu Sheikh Mujib Shilpa Nagar that is expected to be completed by April 2025.
Berger Paints established a wholly owned subsidiary named "Berger Tech Consulting" for technology-enabled services (ITES) here in Bangladesh with an investment of Tk 2.50 million.
Meanwhile, the stock closed at Tk 1,800 on Wednesday, losing 0.02 per cent over the day before.