RAK Ceramics (Bangladesh) has posted an impressive 191 per cent increase in its net profit year-on-year in 2021, riding on what the company says is a "responsive business strategy" taken by the management.
The country's leading tiles and sanitary ware maker also cut its finance cost significantly. As a result, its net profit after tax grew 191 per cent to Tk 905.19 million for the year ended on December 31, 2021 from Tk 310.65 million in the previous year.
In a filing with Dhaka Stock Exchange (DSE) Thursday, the company said its consolidated earnings per share (EPS) increased to Tk 2.12 for the year ended on December 31, 2021 from Tk 0.73 in the corresponding period.
The company also posted a 29.54 per cent growth in sales to Tk 6.85 billion during the year 2021 which was Tk 5.29 billion in the previous year.
RAK Ceramics reported a stellar business growth in 2021, riding on responsive business strategy taken by the management, said a company official.
The company registered an improvement of cost of sales due to enhanced control on cost compared to the previous year which resulted in an increase of earnings per share, he said.
"Reduction of corporate tax rate by 2.5 per cent in the current fiscal year also impacted profit after tax eventually, improving earnings per share".
But, cash collection from the customers has not been increased in the same proportion due to allowing additional credit terms during the pandemic period which is impacting in net operating cash flow inversely, he said.
The board of directors of the company has recommended a 12.50 per cent cash dividend for the year ended on December 31, 2021.
The annual general meeting (AGM) will be held on March 31 at 11:00am using the digital platform. The record date is set on February 24.
The company has also reported consolidated net asset value (NAV) per share of Tk 17.53 for the year ended on December 31, 2021 as against Tk 16.41 for the same period of the previous year.
Its consolidated net operating cash flow per share (NOCFPS) stood at Tk 1.36 for the year ended on December 31, 2021 as against Tk 2.87 for the same period of the previous year.
Despite the hefty profit growth news, the company's share price fell by 6.45 per cent to close at Tk 55.10 each on Thursday at the DSE.
RAK Ceramics, which was listed in 2010, disbursed a 10 per cent cash dividend in 2020.
The company's paid-up capital is Tk 4.27 billion, authorised capital is Tk 6.0 billion and the total number of securities is 427.96 million.
Sponsor-directors own 72.10 per cent stake in the company while institutional investors 18.56 per cent, foreign investors 0.59 per cent and general public 8.75 per cent as on December 31, 2021, the DSE data showed.
RAK Ceramics (Bangladesh) is the country's largest tiles and sanitary ware brand. Incorporated in Bangladesh in 1998, RAK Ceramics is a UAE-Bangladesh joint venture project.
