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Latest financial disclosures once again proved that companies with strong financial positions perform well even in a challenging business climate if they can ensure management efficiency.
Companies, such as Square Pharmaceuticals, Marico Bangladesh, MJL Bangladesh, Berger Paints and Eastern Housing, gained a year-on-year growth in profit in the first half of FY25.
The other factors, which helped them perform better than others during the period, include financial optimisation and good corporate practices.
Experts said the successful companies had realigned their operations with the changed business environment.
"Many good companies experienced a decline in revenue but well-structured companies changed business strategies to avert the impact of sluggish economy," said Azam J Chowdhury, managing director of MJL Bangladesh.
For example, he said, MJL Bangladesh reduced its finance costs by extending the period of payments for raw materials.
"Apart from adjusted prices of goods, our financial optimisation supported the company's profit growth," Mr. Chowdhury added.
MJL Bangladesh experienced a 30.23 per cent growth year-on-year in profit to Tk 2.2 billion in H1 of FY25.
Square Pharmaceuticals reported a 6 per cent growth in revenue in H1, FY25, compared to the same period a year earlier. It eventually gained a 12.89 per cent year-on-year growth in profit to Tk 12.69 billion during the period.
Muhammad Zahangir Alam, chief financial officer (CFO) of Square Pharmaceuticals, said the drug maker's finance cost had remained zero for the last five years for its zero borrowings.
"Apart from revenue income, our other incomes always support our profit growth," he added.
Managing Director of Midway Securities Md Ashequr Rahman compared the performance of the companies with the performance of investors in the market.
He said most stock investors, including day-to-day traders, make easy profits when the market is in a bull run. But most of them fail to manage portfolios when the market is bearish.
"The companies that can operate understanding the current business environment are good ones," Mr Rahman said.
Despite having a higher cost of goods sold, Eastern Housing has reported a 28 per cent year-on-year escalation in profit to Tk 389.03 million for H1, FY25. Lower finance costs led to the profit growth.
The companies, which could not contain finance costs, were unable to secure a profit growth. In most cases, profits were wiped out by exorbitant finance costs.
For example, Singer Bangladesh suffered a loss of Tk 489 million in 2024 for the first time in six years despite a growth in revenue and gross profit.
The company's short-term borrowings rose to Tk 11.90 billion in 2024 from Tk 8.14 billion the year before.
"A company, which has to pay interests at a high rate [current market rate], is unlikely to bag a profit," said Md. Moniruzzaman, managing director of Prime Bank Securities.
Companies having efficient management adopt a mechanism to pass on additional costs to consumers.
A reduction in operating expenses is another way to keep the profit growth unaffected. During the pandemic, multinational companies cut down operating expenses to maintain their profit growth, added Moniruzzaman.