Berger Paints declares 400% cash dividend

Berger Paints Bangladesh, the country's leading coating producer, has recommended a 400% cash dividend for the financial year that ended on 31 March 2023.

The company had paid a 400% cash dividend in the previous financial year as well. 

During the year, Berger's consolidated profit increased by 4% year-on-year and stood at Tk301 crore at the end of March 2023. 

Its consolidated earnings per share stood at Tk64.91, which was Tk62.68 a year ago, and consolidated net asset value per share stood at Tk279.78 at the end of March 2023.

Berger's solo net profit grew by 5% to Tk293 crore, from Tk278 crore a year ago.

To determine the eligible shareholders for the dividend, the company has set the record date on 26 June 2023, and the final approval of the dividend will be secured in an annual general meeting (AGM) scheduled to be held on 22 August.

Company Secretary Khandker Abu Jafar Sadique said the sector is facing challenges because of pricey raw materials and devaluation of the local currency against the dollar. 

Berger Paints achieved higher revenue during the year but high production cost and dollar appreciation ate up a big portion of the profit, he added.

As of 30 April 2023, sponsors and directors jointly held 95%, institutions 3.68%, foreign investors 0.2%, and the general public 1.12% shares in the company.

The share price of the company stood at Tk1,800 each at the Dhaka Stock Exchange on Wednesday.

Berger Paints Bangladesh is the leading company in the steadily growing local paints market, and its parent company is based in the United Kingdom. 

It got listed on the stock exchanges in 2006.