Most MNCs register increased EPS in H1

FE Report | Published: August 05, 2018 10:17:54 | Updated: August 06, 2018 14:42:21


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The earnings of most of the multinational companies (MNCs) listed with the country's capital market increased during the first half (H1) of this year as compared to the same period of previous year.

According to the un-audited financial statements for January-June 2018, the consolidated earnings per share (EPS) of seven companies, out of 11, increased during the period under review.

The EPS is a portion of a company's profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company's profitability.

The EPS of LafargeHolcim, BATBC, Singer Bangladesh, Bata Shoe, Grameenphone (GP), Marico Bangladesh and Linde Bangladesh increased in the H1.

Market operators said that the MNCs earn more as the companies are well-managed and have reputation of their product quality.

The brand value, profitability and future prospects have also driven up the share prices of the companies, which rose on their corporate performance, said a leading broker.

"Investors put their fund in those companies hoping for higher returns as their financial indicators are very strong," he added.

However, EPS of Berger, Glaxo SmithKline, Reckitt Benckiser and Heidelberg Cement declined during the period under review.

The consolidated EPS of Heidelberg Cement declined to Tk 9.55 for January-June 2018 as against Tk 12.71 for January-June 2017.

The company noted the EPS was declined by Tk 3.16 due to higher cost of goods sold.

The EPS of Reckitt Benckiser also fell to Tk 19.37 for January-June, 2018 as against Tk 25.65 for January-June, 2017.

The company's EPS declined by Tk 6.28 or 24 per cent in the H1 of 2018 as compared to the same period of last year because the company maintained its long term marketing investment strategy behind the key brands, said the company.

The listed MNCs, which account for approximately 28 per cent of the total market cap of DSE, also declare a significant amount of cash dividends every year after their listing with the bourses.

Among the top MNCs in terms of dividend declarations, Reckitt Benckiser disbursed highest 790 per cent cash dividend for the period ended on December 31, 2017.

BATBC and Marico Bangladesh disbursed 600 per cent cash dividends each, followed by Glaxo SmithKline 550 per cent cash dividend in 2017.

Linde BD disbursed 340 per cent cash dividend, followed by Bata Shoe 335 per cent and Grameenphone 205 per cent.

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