Reckitt Benckiser Bangladesh sees Q1 revenue jump, profit growth slows
UK-based multinational Reckitt Benckiser (Bangladesh) PLC reported an 11% year-on-year rise in revenue in the first quarter of 2025, driven mainly by product price hikes amid rising production costs, according to its financial statement.
From January to March, its revenue rose to Tk147.33 crore, up from Tk132.67 crore in the same period last year. However, net profit grew marginally by 1.12% to Tk15.33 crore, as rising input costs limited bottom-line growth.
Reckitt attributed its earnings to strong performance from its key brands including Dettol, Harpic, Veet, and Lizol. Its earnings per share (EPS) stood at Tk32.45, slightly up from Tk32.10 a year earlier.
The company reported that its cost of sales and operating expenses surged by around 14% year-on-year, due to sharp increases in the prices of core ingredients such as soap noodles and surfactant.
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On Wednesday (7 May), its share price closed 2.34% lower at Tk3,405 on the Dhaka Stock Exchange. Despite a 16% decline since April, it remains the most valuable stock on the bourse.
Dividend declaration
Despite an 8% decline in net profit, Reckitt Benckiser announced a record-high 3,330% cash dividend for 2024. This means shareholders of the MNC will receive Tk333 per share for the year ended 31 December 2024.
According to market insiders, the final cash dividend for 2024 is the highest in the company's history, surpassing the previous peak of 1,650% declared in 2021.
In 2023, it paid a 550% cash dividend, or Tk55 per share, to its shareholders, as per information available on the DSE.
To disburse the Tk157 crore in dividends for 2024, the company will have to spend approximately Tk82 crore from its retained earnings.
To approve the dividend, the Reckitt Benckiser will conduct its annual general meeting on 28 May through a digital platform. Investors who appeared on the record date which was scheduled for 29 April are eligible to participate in the meeting.
In 2024, Reckitt reported revenue of Tk546 crore, up 3.36% from the previous year. However, net profit declined by 8.33% to Tk75.20 crore. Its earnings per share dropped to Tk159.17 from Tk173.65 in 2023, according to its disclosure.
Reckitt Benckiser Bangladesh was incorporated on 15 April 1961 as Robinson's Foods (Pakistan) Limited. After Bangladesh's independence, the company was renamed Robinson's Foods (Bangladesh) in August 1972. Later in 1986, the company's name was changed to Reckitt & Colman Bangladesh Limited. Finally, following the merger of Reckitt & Colman and Benckiser, the name changed to Reckitt Benckiser (Bangladesh) on 9 November 2020.
The company was listed on the Dhaka Stock Exchange in 1987.
Of the total shares of the company, Reckitt Benckiser Group PLC holds 82.96%, government 3.77%, institutional investors 5.78%, foreign investors 2.26%, and general investors hold 5.23%.
