The Financial Express
Swasti Lankabangla Swasti Lankabangla

Most MNCs witness EPS rise in H1

| Updated: August 12, 2019 16:08:17

Most MNCs witness EPS rise in H1

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

Market analysts said that the multinational companies have been doing well due to their strong fundamental, brand value, well management and quality of products which helped them to earn more.

EPS of eight multinational companies, out of eleven listed with the country's capital market, rose while three companies' EPS declined as per un-audited financial statements for January-June, 2019.

EPS is the 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  Reckitt Benckiser, Marico, Berger Paints, LafargeHolcim, GlaxoSmithKline, Singer, Line BD and Grameenphone rose between 11 per cent and 92 per cent while three MNCs EPS declined up to 72 per cent, according to data available with the Dhaka Stock Exchange.

Currently, the multinational companies accounted for 24 per cent of the total market capitalisation of the country's premier bourse.

Reckit Benckiser witnessed the highest EPS surged with a whopping 92 per cent year-on-year in January-June 2019 compared to the same period in the previous year.

The company's EPS stood at Tk 37.28 for January-June, 2019 as against Tk 19.37 for January-June, 2018.

The company noted that EPS increased by Tk 17.91 per share as compare to the last year same period due to optimization of cost of sales by taking supply initiatives despite adverse impact on foreign currency movements.

Marico Bangladesh followed next in terms of EPS surged. The company's EPS rose more than 53 per cent to Tk 26.95 in April-June quarter as its year-end on March 31.

The board of directors of the Marico has also declared 250 per cent interim cash dividend based on three months financials for the period ended on June 30, 2019. Record date for entitlement of interim cash dividend is on August 20.

The LafargeHolcim's consolidated EPS also soared 51 per cent to Tk 0.68 for January-June, 2019, up from Tk 0.45 for January-June, 2018.

The consolidated EPS of Berger Paints was Tk 11.12 for April-June 2019 as against Tk 7.39 for April-June 2018, registering an increase of 50 per cent during the period under review. The company's year-end also March 31.

The Berger also informed that EPS for first quarter ended June 30, 2019 increased significantly from the same period of previous year due to decline in price of key raw materials and increase in net financial income.

The GlaxoSmithKline (GSK) Bangladesh’s EPS rose 47 per cent to Tk 22.25 for January-June, 2019 as against Tk 15.14 for January-June 2018.

Last year, GSK Bangladesh shut pharmaceuticals unit in the country due to incurring loss. However, the company continues with its profitable consumer health care business that produces items like Horlicks, Sensodyne and Glaxose-D.

Singer's consolidated EPS also rose 29 per cent to Tk 5.14 for January-June 2019 as against Tk 3.97 for January-June 2018.

The EPS of Linde Bangladesh also soared 20 per cent to Tk 36.76 for January-June 2019 as against Tk 30.56 for January-June 2018.

GP, the largest market cap company's EPS also increased 11 per cent to Tk 13.37 for January-June 2019 as against Tk 12.10 for January-June, 2018.

The lone listed mobile phone company also declared 90 per cent interim cash dividend for the year 2019 of the profit after tax for the half year ended on June 30, 2019.

A leading broker said brand reputation, well-managed operations, product quality and hefty dividend declaration attracted investors to the multinational companies' shares.

About the MNCs overall performance, Rokibur Rahman, director of the DSE, said MNCs are the well managed and reputed companies in capital market having one-fourth shares of the market cap.

The MCNs performance is consistent due to their company value, quality and good fundamentals which is very much needed for a vibrant capital market, he opined.

On the other hand, EPS of Heidelberg Cement, Bata Shoe and British American Tobacco Bangladesh Company declined during the period under review.


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