Kohinoor Chemicals earns record profit, declares highest-ever dividends
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Kohinoor Chemicals reported a 35 per cent year-on-year growth in profit to Tk 509 million in FY24, the highest since its listing in the stock market.
The oldest soap, cosmetics & toiletries manufacturer's earnings per share (EPS) jumped to Tk 15.12 for FY24 from Tk 11.19 the year before, according to its audited financial statements published on Tuesday.
Based on the profit growth, the board of directors of the company declared 50 per cent cash and 10 percent stock dividends for FY24, also the highest since listing.
Kohinoor Chemicals paid 40 per cent cash and 10 per cent stock dividends last year.
Higher sales and significantly lower finance costs, largely due to low impact from devaluation of the local currency against foreign currencies, helped the company earn the record profit, said a company official.
Kohinoor stands out among its peers, driven by sales of finished goods of its well-known brands of soaps, cosmetics, and toiletries.
It also managed to offset costs partially by adjusting sales prices.
Although the cosmetics' manufacturer is yet to disclose the annual sales figure, its nine-month sales grew 16 per cent year-on-year to Tk 4.65 billion until March this year.
Market operators say Kohinoor has been able to maintain a profit and sales growth as its products have been very popular among the middle class and rural people of the country.
Most of its products carry the brand name of Tibet. Other brands of the company are Sandalina, Ice Cool, Fast Wash, and Bactrol.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, stood at Tk 28.67 per share in FY24, as against Tk 27.64 in the negative a year ago.
It will hold its annual general meeting on December 17 and the record date for entitlement of dividends is November 28.
Despite the profit growth, the company's stock slid 1.53 per cent to close at Tk 541.2 per share on Tuesday on the Dhaka Stock Exchange.