Berger Paints Bangladesh Limited witnessed a consistent growth in revenue and profitability, registering a net profit growth of 16.84 per cent for the year ended on March 31, 2019.
The multinational company posted a 7.58 per cent sales value growth during the period and increased its market share in 2018-2019.
The company's consolidated revenue stood at Tk 17.73 billion for the year ended on March 31, 2019, up from Tk 16.48 billion in the previous year, according to its latest annual report.
Its net profit grew by 16.84 per cent year on year to Tk 1.95 billion.
The company officials said the growth in revenue and net profit is satisfactory considering the market conditions.
"This is the result of all-out efforts to optimise cost while remaining competitive in the market," the company said in its annual report.
To offset the overall raw materials price inflation, product price was increased by 4.67 per cent, and the total expense of 2018-19 was reduced to 28.63 per cent of net sales, compared to 30.50 per cent of previous year, according to the annual report.
The Berger Paints has been the leading paint solution provider in the country for decades and want to continue to do so to remain a market leader with state-of-the-art technology and products, it said.
Expansion of distribution reach in the semi-urban and rural market along with innovative marketing strategies will be continued to maintain the leadership position in the market, said Rupali Chowdhury, managing director of Berger Paints Bangladesh.
She noted that a number of new products and initiatives were launched in 2018-19 to fulfil the diversified customer needs and explore new frontiers.
Berger Paints has launched WeatherCoat Antidirt Supreme, a new addition under Antidirt product range. Berger has added liquid printing ink to its portfolio.
The company has invested a substantial amount for expansion of capacity as well as diversification of products and businesses, said Ms Chowdhury.
In October 2018, Bangladesh Economic Zone Authority (BEZA) has allotted 30 acres of land at Mirsarai and Feni Economic Zones to Berger Paints Bangladesh.
"This land will help the company optimise manufacturing process and support the growing demand for paints in Bangladesh market," said Ms Chowdhury.
The Berger Fosroc Limited, a joint venture of Berger and Fosroc International Ltd, started commercial operation in Bangladesh on September 12 in 2018 for the purpose of carrying on the business of manufacturing and selling construction chemicals, according to the annual report.
The Berger Paints, listed on the Dhaka Stock Exchange in 2006, approved 250 per cent cash dividend for the year ended on March 31, 2019. The annual general meeting of the company was held on July 17.
The Berger Paints has also reported consolidated earnings per share (EPS) of Tk 44.13, consolidated net asset value (NAV) per share of Tk 176.18 and consolidated net operating cash flow per share (NOCFPS) of Tk 55.09 for the year ended on March 31, 2019 as against Tk 38.55, Tk 142.06 and Tk 31.66 respectively for the same period of the previous year.
The company's consolidated EPS was Tk 11.12 for April-June 2019 as against Tk 7.39 for April-June 2018.
Its consolidated NOCFPS was Tk 20.03 for April-June 2019 as against Tk (3.38) for April-June 2018.
The consolidated NAV per share was Tk 187.31 as on June 30, 2019 and Tk 176.18 as on March 31, 2019.
The company also informed that EPS for the first quarter ended on June 30, 2019 increased significantly from the same period of previous year due to a decline in the price of key raw materials and increase in net financial income.
Each share of the Berger Paints closed at Tk 1,509.50 on the Dhaka bourse on August 8, the last trading day before Eid holiday.
The company's paid-up capital is 463.78 million, authorised capital is Tk 1.0 billion and the total number of securities is more than 46.37 million.
Sponsor-directors own 95 per cent stake in the company while institutional investors own 2.22 per cent, foreign investors 1.32 per cent and the general public 1.46 per cent as on June 30, 2019.
