Beach Hatchery declares 10% cash dividend, profit jumps 118% in FY24
Highlights
- Declares 10% cash dividend
- EPS jumps 118% to Tk2.03 in FY24
- Shares drop 2.63% to Tk96.20
- EPS was Tk0.85 in Q1 of FY25
Beach Hatchery, a publicly listed agro-based firm, has recommended a 10% cash dividend for the fiscal year 2023-24, exclusive to its general shareholders.
This will be the highest payout from the firm in years, with its last notable payout being a 15% stock dividend in FY2013.
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According to the company's price sensitive disclosure on the Dhaka bourse yesterday, Beach Hatchery posted earnings per share of Tk2.03 in FY24, which was 118% higher compared to the previous year.
Despite the dividend declaration, its share price fell by 2.63% yesterday, closing at Tk96.20 on the DSE.
Beach Hatchery has scheduled its annual general meeting (AGM) for 31 December to approve the dividend and audited financial statement. The record date for determining eligible shareholders has been set for 15 December.
According to the company's decision, the dividend is intended only for its general shareholders, with sponsors and directors, who hold 34.97% of the company's shares, excluded from the payout.
On 26 October last year, the company announced a 2% cash dividend exclusively for its general shareholders for the fiscal year 2022-23. However, it failed to distribute the dividend within the stipulated time as required by listing regulations.
As a result of this non-compliance, the DSE downgraded the company's shares to the Z category on 25 September this year. Following the downgrade, the company disbursed the declared dividend and submitted a compliance report. Subsequently, the DSE upgraded the company's category to B on 24 October.
Beach Hatchery based its business in Teknaf but the government acquired its land to build a marine drive. Therefore, the company had to close business on 24 April 2016. Later the company shifted its business to the Trishal area of Mymensingh, taking a 101-acre land on lease for five years till 2024. It resumed production in June 2021.
Beach Hatchery mainly produces white fish such as Tilapia, Koi, Pangas, and Pabda through intensive culture methods used in its new Teknaf project. It also started production of Koral fry which is a type of Sea Bass farming.
July-September performance
Beach Hatchery's earnings per share saw a significant 174% increase, reaching Tk0.85 in the July-September quarter of this fiscal year, compared to the same period last year.
During the quarter, its net asset value per share stood at Tk13.33 and the net operating cash flow per share of Tk0.31.
