Berger profit jumps seven times
Berger Paints Bangladesh's profit jumped seven times as its business returned to normalcy in the April to June quarter, recouping the losses incurred a year ago owing to the coronavirus pandemic.
The multinational paint-maker's sales rose 153 per cent to Tk 525.5 crore in the quarter, which was Tk 207.9 crore in the same period a year ago, according to a regulatory filing on the website of the Dhaka Stock Exchange yesterday.
"Last year's sales were abnormally low due to the pandemic. However, the sales have returned to normalcy this year," said Khandker Abu Jafar Sadique, company secretary of Berger Paints Bangladesh.
The sales had dropped 49 per cent year-on-year from April to June of 2020 after the government enforced a two-month lockdown to limit the spread of the deadly virus before curbs were relaxed.
"Due to the strict lockdown and fear among the people, our sales were almost zero during the two months. As a result, the overall sales dropped in the year," Sadique said.
Though the country has been under a lockdown since April this year, as the second wave has turned deadly, the sales have not crashed.
Berger Paints usually logs 10 to 11 per cent sales growth, the company secretary said.
On the back of the higher sales, the company's profit surged 593 per cent to Tk 74.62 crore in the quarter.
Earnings per share stood at Tk 16.09, up from Tk 2.32 in the same period a year earlier.
The reduction in the corporate tax rate from 25 per cent to 22.5 per cent in the current fiscal year has pushed the EPS higher.
The government cut the corporate tax rate for the listed companies by two percentage points for 2021-22.
"This would be advantageous for us as we will pay the tax under the new rate," Sadique said.
Berger Paints' financial year runs from April through March.
Shares of the company closed 1.15 per cent higher at Tk 1,800 on the DSE yesterday.
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