Berger Paints’ profit up despite pandemic blues

Profits of Berger Paints Bangladesh rose 5.1 per cent year-on-year during April to December on the back of the lower price of raw materials and cut in costs in the pandemic-hit 2020 that saw revenue drop.

The Indian multinational company made Tk 160 crore in profits in the first nine months of the financial year that ends on March 31. Net revenue declined 7.89 per cent to Tk 1,118 crore.

"Our revenue fell due to the closure of all activities in the first two months of our financial year," said Khandker Abu Jafar Sadique, company secretary of Berger Paints Bangladesh.

Bangladesh enforced a countrywide lockdown in April and May to limit the spread of the coronavirus before easing of restrictions from June. 

"Our profits rose thanks to the favourable price of raw materials and controlled expenses," Sadique said.

Expenses declined 26 per cent to Tk 199 crore, the financial report of the company showed.

"We have deferred some expenses such as for travelling and training. Some other expenditures also fell," Sadique said.

But the employment benefits were regular and were not curtailed, he said. The company's sales bounced back following the reopening of economic activities. As a result, sales rose 10.5 per cent in the October-December quarter to Tk 514 crore.

Investment income fell 26.5 per cent to Tk 10.73 crore because of lower bank interest, according to the financial report.

Net operating cash flow per share decreased mainly because of lower sales resulting from the lower collection in April and May.

Berger shares traded at Tk 1,560.20, up 0.70 per cent, on the Dhaka Stock Exchange yesterday.