Berger Paints Bangladesh posted an impressive 594 per cent increase in its first quarter (Q1) profit for April-June, 2021 compared to the same quarter of the last year thanks to higher revenue and reduction of the corporate tax rate.
The leading paints maker has reported consolidated revenue of Tk 5.25 billion for the first quarter ended on June 30, 2021, as against revenue of Tk 2.08 billion in the same period of the previous year.
The multinational company has also reported a net income of Tk 746.21 million in April-June, 2021 quarter which was Tk 107.58 million in the same quarter a year earlier.
In a filing with Dhaka Stock Exchange (DSE) on Tuesday, the company said its consolidated earnings per share (EPS) increased to Tk 16.09 for April-June, 2021, up by a whopping 594 per cent, from Tk 2.32 in the corresponding period.
The company has also reported its consolidated net operating cash flow per share (NOCFPS) of Tk 1.24 for April-June 2021 as against minus Tk 10.34 for April-June 2020.
The consolidated net asset value (NAV) per share was Tk 248.87 as of June 30, 2021, and Tk 232.78 as of March 31, 2021.
The company also informed that EPS for the first quarter ended 30 June 2021 increased significantly mainly due to higher revenue compared to the same period of the previous year, which was heavily impacted by countrywide lockdown in Q1 2020-2021.
Reduction of the tax rate from 25 per cent to 22.5 per cent as per Finance Act 2021 is another reason for the increase of earnings per share, said the company.
The government slashed corporate tax rates for both listed and non-listed companies by 2.5 percentage points for the current fiscal year, other than banks, non-bank financial institutions, mobile phone operators, and tobacco companies.
The net operating cash flow per share (NOCFPS) improved mainly because of higher revenue and lower operational expenses compared to revenue growth.
Berger Paints Bangladesh recently signed an agreement with Promat Fire and Insulation Private Ltd, a leading fire protective coating supplier, in order to launch fire retardant painting solutions in Bangladesh.
As such, the listed multinational paint maker can now import, produce and distribute fire intumescent products in the country.
Each share of the company, which was listed on the DSE in 2006, closed at Tk 1,779.80 on Monday.