Berger Paints to spend highest-ever Tk231cr to pay out dividend for FY24
To determine the eligible shareholders for the dividend, the company has set the record date on 18 August, and the final approval of the dividend will be secured at an AGM on 2 October
Highlights
- Recommends a 500% cash dividend
- Net profit rises 7.72% to Tk324cr
- Net asset value per share surges 11% to Tk309.53
Berger Paints Bangladesh, the country's leading coating producer, recommended a 500% cash dividend equivalent to Tk231.88 crore for the fiscal year 2023-24 ended on 31 March, which will be the highest-ever payout to its shareholders.
The dividend declaration came out from the board meeting held on Saturday, according to company sources.
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Khandker Abu Jafar Sadique, company secretary of Berger Paints, told The Business Standard, back in the 2016-17 financial year, it paid a total of 600% cash dividend. However, at that time, the paid-up capital and number of shares of the company were less and so was the amount of dividend.
Hence, the dividend for the FY24 will be the highest payout in the company's history in taka, he added.
To determine the eligible shareholders for the dividend, the company has set the record date on 18 August, and the final approval of the dividend will be secured at an annual general meeting (AGM) dated 2 October.
In the last financial year, the consolidated net profit of Berger Paints increased 7.72% to Tk324 crore compared to the previous financial year. Its earnings per share stood at Tk69.92, which was Tk64.91 a year ago.
The consolidated net asset value per share of the company rose by 11% to Tk309.53 compared to the previous year.
Jafar said, "We are also experiencing a forex crisis and high inflation. However, our profits have increased due to cost-cutting measures and raising product prices in line with inflation."
He added, "Additionally, we have achieved growth in the sale of paints, as the country's economy is growing despite having challenges."
Berger Paints shares closed at Tk1,825 at the Chittagong Stock Exchange on Thursday.
To meet the forex crisis, Berger Paints Bangladesh secured a $60 million loan from its parent company, J&N Investments (Asia) Limited, in June last year.
In January this year, the company decided to invest Tk813 crore to set up its third factory in the Bangabandhu Sheikh Mujib Shilpa Nagar.
The company said it expects to start production in the new factory in April 2026.
Besides, it also decided to raise paid-up capital through the issuance of right shares at a 1R:17 ratio to all shareholders, meaning that it will give one right share against the existing 17 shares.
