Eight MNCs recommend Tk8,141cr in dividends for 2024

Eight listed multinational companies (MNCs) have recommended a combined dividend payout of Tk8,141 crore for 2024 – a staggering 120% year-on-year increase.  

The other five multinationals out of the total 13 listed on the country's stock exchanges – including Reckitt Benckiser, Bata Shoe, and Heidelberg Materials – have yet to announce dividends for 2024. 

The remaining two companies – Berger Paints and Marico Bangladesh – follow a March fiscal year-end, meaning their financial declarations will come later.

According to their price-sensitive statements filed with the Dhaka Stock Exchange (DSE), the eight dividend-declaring MNCs distributed 114% of their total profits – a sharp rise compared to 2023, when the same firms paid out Tk3,703 crore, which was 60% of their profits. The additional amount will come from their retained earnings. 

Analysts attribute the sharp rise in payouts to easing foreign exchange shortages, allowing MNCs to repatriate profits more smoothly. This aligns with broader macroeconomic improvements, including better foreign exchange reserves and a stable exchange rate.  

The unprecedented dividend jumps highlight improving corporate health and forex conditions, but investors should monitor sustainability and sector-specific risks moving forward, according to market analysts.  

GP, Robi, and Linde propose record-high dividends  

Telecom leaders Grameenphone and Robi, along with industrial gas supplier Linde Bangladesh, have proposed record-breaking dividends to shareholders for 2024.  

GP has announced its highest-ever 330% cash dividend, equivalent to Tk4,456 crore, for the challenging business year 2024.  

The proposed dividend for 2024 will be 22.73% higher than the company's annual net profit. For the first time since 2018, the company is set to pay out more in dividends than its annual profit.  

Analysts had anticipated an accelerated dividend payout as multinational companies had paid out less in 2022 and 2023 due to a difficult foreign exchange situation in Bangladesh, which eased significantly in 2024.  

In a press release, GP's Chief Financial Officer Otto Risbakk attributed the success to its strong balance sheet, which allowed the company to maintain its "long-term perspective alongside a lucrative and predictable dividend policy, despite a challenging economic environment."  

Robi Axiata – the country's second-largest mobile network operator – reported its highest-ever profit last year and proposed its largest dividend since its listing in 2020.  

Robi has increased its dividend payout for 2024, recommending a 15% cash dividend for its shareholders, compared to the 10% cash dividend paid in 2023.  

This means the telecom operator will pay Tk1.5 per share, totalling Tk785 crore in dividends to its shareholders.  

As a result, the dividend payout will amount to 111.8% of its net profit after tax for 2024.  

Commenting on the company's performance in a press release, M Riyaaz Rasheed, acting CEO of Robi Axiata, said, "Our primary focus remains on delivering long-term value to our shareholders and ensuring sustainable growth."  

British American Tobacco (BAT) Bangladesh – a leading multinational cigarette manufacturer – has declared a 150% final cash dividend for 2024, according to a stock exchange filing.  

This brings the total dividend payout for the year to 300% cash, amounting to Tk1,620 crore, including the 150% interim dividend already paid in December. This compares to a 100% cash dividend, or Tk540 crore, in 2023.  

Linde Bangladesh, a multinational industrial and medical gas producer, has recommended a record-high 4,500% cash dividend for its shareholders in 2024. This includes a 400% final cash dividend and a 4,100% interim cash dividend, which was declared during the first seven months of the year.  

Essentially, riding on the significant capital gains from the divestment of its subsidiary Linde Industries Pvt Ltd, Linde Bangladesh recommended the highest interim dividend for its shareholders for the January to September period last year, according to its disclosures published on the stock exchanges' websites earlier.  

Earlier, the multinational firm, listed on the DSE and Chittagong Stock Exchange (CSE), sold its major revenue-generating segment, the welding electrodes business, to the ESAB Group.  

Linde Bangladesh earned around Tk600 crore from the divestment of its subsidiary, which was engaged in the welding electrodes business, according to sources.  

Unilever Consumer declares substantial dividend despite profit drop  

Despite a 31% drop in profits, Unilever Consumer Care Bangladesh has declared a substantial dividend for 2024.  

In an announcement on the Dhaka bourse, the company's board revealed plans to distribute a 520% cash dividend, a notable increase from the 300% cash dividend paid in 2023.  

However, Unilever Consumer's financial performance for the year showed a decline, with net profit falling by 31% to Tk66.70 crore compared to the previous year.  

Despite this, the company has committed to paying approximately Tk100 crore in dividends, which is 150% higher than its annual profit. The additional amount will be sourced from its retained earnings, according to company insiders.  

During the foreign currency reserve issues in Bangladesh, the cash-surplus company had cut its dividends in recent years. However, with the improved national reserve, the company increased dividends to its shareholders, Masud Khan, chairman of Unilever Consumer Care Bangladesh, told The Business Standard earlier.  

LafargeHolcim and Singer slash dividends  

Due to the drop in profits amid high inflation and political turmoil, LafargeHolcim Bangladesh and Singer Bangladesh have cut their dividends for 2024.  

LafargeHolcim Bangladesh, a leading multinational cement manufacturer, has announced a 38% cash dividend for 2024, amounting to around Tk441 crore, despite a 36% decline in net profit.  

However, the total cash payout for 2024 is 24% lower compared to the previous year when the company posted record profits.  

The Europe-based cement producer reported a 3% decline in revenue, which stood at Tk2,754.30 crore, while net profit fell by 36% year-on-year to Tk381.90 crore.  

In a press statement, Iqbal Chowdhury, Chief Executive Officer of LafargeHolcim Bangladesh, said that Bangladesh experienced an eventful year in 2024, yet the company successfully navigated the challenges.  

"We have made significant progress in expanding our innovative and unique sales channels, including direct-to-retail and net retail outlets," he added.  

Singer Bangladesh, a multinational home appliances manufacturer, recorded a loss of Tk49 crore in 2024.  

Owing to the losses, the company reduced its dividend to 10% cash, down from 35% in the previous year.  

The company disclosed its annual financial results and declared the dividend during a board meeting held today, according to sources.  

For the past year, the company reported a loss per share of Tk4.91. This marks the first time in its history that Singer Bangladesh has incurred an annual loss.  

RAK Ceramics has recommended a 10% cash dividend despite incurring a loss last year.