Fu-Wang Foods declares interim dividend for the first time
Fu-Wang Foods, a bread and confectionary foods manufacturer, has decided to pay a 0.50% interim cash dividend to its shareholders for the first half of the current fiscal year.
According to Fu-Wang Foods Secretary Md Sharif Al Mahmood, this is a first for the company.
However, Fu-Wang Foods failed to pay any dividends to the shareholders in the last two fiscal years – 2021-22 and 2020-21.
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In FY2021-22 the company's loss per share stood at Tk2.26, forcing it not to pay any dividends. Its earnings per share (EPS) was Tk0.05 during that period.
As per the company's disclosure published on the Dhaka Stock Exchange (DSE) on Tuesday (28 February), the company has fixed 21 March as the record date for determining shareholders eligible for such interim dividend.
According to Fu-Wang Foods, during July-December of FY2022-23, its EPS jumped by 55% to Tk0.14 compared to Tk0.09 at the same time of the previous fiscal.
Last year, Minori Bangladesh – a subsidiary of the Japanese farming company Minori Co Ltd – entered into the board of publicly listed Fu-Wang Foods by acquiring a 7.61% sponsor directors stake.
The Bangladesh Securities and Exchange Commission (BSEC) approved the acquisition in January 2023.
According to sources, the acquisition cost Minori Tk10 crore. Of the amount, Fu-Wang Foods' former directors got Tk4 crore, and Tk6 crore was invested in the company to deal with the financial anomalies regarding its inter-party transaction with its subsidiary.
In addition, Minori will inject a fresh investment of Tk20 crore to run Fu-Wang Foods.
Founded in 1997, Fu-Wang Foods Limited was fully owned by foreign investors who wanted to do business in the food processing industry in Bangladesh.
It got listed on the stock exchanges in 2000. But later, the foreign investors sold the company to local investors.
Arif Ahmed Chowdhury has been the managing director since then, and his family owns 8.75% company shares.
Since its inception, the company has had confectionery items: cakes, bread, biscuits, toast, snacks, and instant noodles.
