Higher sales and falling cost of production have helped multinational companies earn good profits in the six months to June.
Lafarge Surma Cement's net profit rose 32.07 percent to Tk 140 crore in the January-June period from the same time a year ago.
“We have posted healthy profit with increasing sales and falling costs of production this year,” said Masud Khan, finance director of Lafarge Surma Cement.
The company increased production and cut power costs and our interest cost also declined as we repaid foreign loans last year.”
The Indian rupee fluctuations affected operating costs last year, especially through the materials imported from Meghalaya in India, he said. It was not the case this year as the currency was stable, Khan said.
“Our deferred tax also declined in the period.” Lafarge's earnings per shares stood at Tk 1.21 in the last six months, and its share price advanced 2.55 percent to Tk 84.4 yesterday.
Bata Shoes' profits accelerated 14.53 percent to Tk 28 crore in the first half of the year compared with the same period last year, with implementation of a cost control strategy.
“We have controlled costs of production,” Hashim Reza, company secretary of Bata Shoes.
The prolonged political crisis has cut the purchasing power of the consumers; otherwise the profits could have been higher, Reza said. “Sales turnover in the period failed to meet our expectations.”
The half-yearly earning declaration appreciated the company's share prices by 1.64 percent, which closed at Tk 966.30 yesterday. Bata's EPS stood at Tk 20.37 for the period.
In the first quarter ended June 30, Marico Bangladesh's net profit rose 11.84 percent to Tk 47 crore from the same period last year, on the back of growing consumer confidence over calm political environment in the country.
Political stability boosted consumption in the period, said Iqbal Chowdhury, finance director of Marico Bangladesh. The stability of the exchange rate also helped Marico pull up profits, he said. Marico is a major player in the local consumer market, he said.
The company's revenue stood at Tk 215 crore in the first quarter, up 12 percent from the same period last year, with EPS at Tk 14.82 for the period.
Marico also declared an interim cash dividend of 150 percent for the year that will end on March 2015. Share prices of Marico fell 1.48 percent to close at Tk 1,052.
British American Tobacco Bangladesh's net profit rose 39.21 percent to Tk 287 crore in the first half of the year, compared to the same period a year ago.
The company sold 20.5 billion sticks in the period, higher from 17.8 billion sticks in the same period last year, which represents a staggering volume growth of 15.2 percent, according to BRAC EPL Stock Brokerage.
Consequently, net revenue of the company saw 17.6 percent year-on-year growth in the first half, BRAC EPL said. The company's EPS stood at Tk 47.87 for the period.
Linde Bangladesh's earned a profit of Tk 29 crore in the six months, which is 14.09 percent lower compared with the same period last year. “Our business is the same compared to the previous period,” said Mohammed Nazmul Hossain, finance director of Linde Bangladesh.
“Profit was higher in the previous quarter of last year as we have earned Tk 7 crore from selling lands.”
The company's main business is welding electrodes used in real estate, he said, adding that there is no growth in the company's portfolio because of the sluggish real estate sector. The company announced 200 percent interim cash dividends for the year that will end on December 2014.