Confidence Cement's Q2 profit slides 20pc
The cement maker to raise Tk 1.5b thru preference shares
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Confidence Cement Limited, a concern of Chattogram-based Confidence Group, on Thursday reported a 20 per cent drop in profit year on year in the second quarter (Q2) of fiscal year 2023.
The company attributed the lower profit to higher raw material prices in the international market and sharp depreciation of local currency against the US dollar.
The cement maker raked in a profit of Tk 214.62 million in October-December 2022 as against Tk 267.88 million in the same quarter a year earlier.
As a result, its consolidated earnings per share (EPS) stood at Tk 2.74 for Q2, down from Tk 3.42 in the same quarter a year before, according to its unaudited financial statements.
The cement manufacturer's revenue also edged down by 1.37 per cent year on year to Tk 1.05 billion in the three months through December 2022.
Its consolidated profit for six months (July-December 2022) also dropped 23 per cent year on year to Tk 346 million.
And the net operating cash flow per share (NOCFPS) was Tk (4.98) for July-December 2022 as against Tk (5.25) for the same period of the previous year.
At a meeting on Thursday, the board of directors of Confidence Cement also decided to issue convertible preference shares to raise a capital of Tk 1.50 billion.
Preference share, also known as preferred stock, is an exclusive share option which enables shareholders to receive dividends announced by the company before the equity shareholders.
Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.
The cement maker's preference share issue is subject to the approval of the shareholders in the upcoming extraordinary general meeting (EGM) and the Bangladesh Securities and Exchange Commission (BSEC).
The EGM will be held on Ma rch 25 at 11:00am on a digital platform. The record date for EGM is on March 13.
Established in 1991, Confidence Cement started commercial operation in 1994. Presently, the company's annual production capacity is 1.2 million tonnes.
Listed in 1995, its price has been languishing at the floor price of Tk 89 since December 6 last year.