Reckitt Benckiser declares 40.6% lower dividend for 2022

UK-based multinational Reckitt Benckiser Bangladesh declared a 980% cash dividend to its shareholders for the year that ended on 31 December 2022, which was 40.6% lower than the previous year.

In 2021, it had paid the highest ever 1,650% cash dividend in its history.

The company saw profit growth in the previous years, mainly due to the increase in sales of health and hygiene products because of the Covid-19 pandemic. And based on this profit growth, the company declared handsome dividends for 2019, 2020, and 2021.

But in 2022, the company's health and hygiene product sales decreased owing to the easing of the pandemic situation.

Its profit also fell because of the high price of raw materials, and appreciation of the dollar.

In 2020, the company spent a lot of money to create mass awareness about the strength of its products and then later slashed the spending, according to Reckitt's financial statement.

Last year, the company's earnings per share (EPS) dropped by 18% to Tk139.50 and its net asset value also declined by 12% to Tk176.80, compared to the previous year.

Also, in the first nine months of 2022, the company witnessed EPS decline. In its financial report at the time, the company said cost of sales increased around 21.23% compared to the same period in 2021 due to unprecedented hikes in prices of key ingredients (soap and noodles).

Reckitt has not disclosed its annual sales for 2022 yet, but sources in the company told The Business Standard that they were roughly 5% down from the previous year.

Reckitt Benckiser Bangladesh was listed on the Dhaka Stock Exchange in 1987.

Among all listed companies in the stock exchange, Reckitt's shares are the most valuable at present.

At the end of Thursday's trading session, its shares closed at Tk4,760.70 each.

Of the total shares of the company, Reckitt Benckiser Group PLC holds 82.96%, government 3.77%, institutional investors 4.48%, foreign investors 2.82%, and general investors hold 5.97%.