The earnings per share (EPS) of most of the multinational companies (MNCs) listed with the country’s capital market increased in the first half (H1) of this year compared to the same period in the previous year.
Market analysts said the multinational companies have been doing well due to their strong fundamentals, brand value, well management and quality of products which helped them earn more.
EPS of eight multinational companies, out of eleven listed with the country’s capital market, rose while three saw their EPS fall as per un-audited financial statements for January-June, 2019.
EPS is the portion of a company’s profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company’s profitability.
The EPS of Reckitt Benckiser, Marico, LafargeHolcim, Berger Paints, GlaxoSmithKline, Singer, Line BD and Grameenphone rose between 11 per cent and 92 per cent while three MNCs EPS declined up to 72 per cent, according to statistics available with the Dhaka Stock Exchange.
Currently, the listed MNCs account for 24 per cent of the total market capitalisation of the DSE.
Reckitt Benckiser witnessed the highest EPS surged with a whopping 92 per cent year-on-year in January-June 2019.
The company’s EPS stood at Tk 37.28 for January-June, 2019 as against Tk 19.37 for the same period in the previous year.
The company noted that EPS increased by Tk 17.91 per share due to optimization of cost of sales by taking supply initiatives despite adverse impact on foreign currency movements.
Marico followed next in terms of EPS surged. The company’s EPS rose more than 53 per cent to Tk 26.95 in April-June quarter as its year-end on March 31.
The Marico also declared 250 per cent interim cash dividend based on three months financials for the period ended on June 30, 2019.
The LafargeHolcim’s consolidated EPS also soared 51 per cent to Tk 0.68 for January-June, 2019, up from Tk 0.45 for January-June, 2018.
The consolidated EPS of Berger Paints was Tk 11.12 for April-June 2019 as against Tk 7.39 for April-June 2018, registering an increase of 50 per cent during the period under review. The company’s year-end also March 31.
The Berger also informed that EPS for first quarter ended June 30, 2019 increased significantly due to decline in price of key raw materials and increase in net financial income.
The GlaxoSmithKline (GSK) Bangladesh’s EPS also rose 47 per cent to Tk 22.25 for January-June, 2019 as against Tk 15.14 for January-June 2018.
Singer’s consolidated EPS rose 29 per cent to Tk 5.14 for January-June 2019 as against Tk 3.97 for January-June 2018.
The EPS of Linde Bangladesh also surged 20 per cent to Tk 36.76 for January-June 2019 as against Tk 30.56 for January-June 2018.
GP, the largest market cap company’s EPS also increased 11 per cent to Tk 13.37 for January-June 2019 as against Tk 12.10 for January-June, 2018.
The lone listed mobile phone company also declared 90 per cent interim cash dividend for the year 2019 of the profit after tax for the half year ended on June 30, 2019.
Brand value, well-managed operations, product quality and hefty dividend declaration attracted investors to the multinational companies’ shares, said a leading broker.
He noted that MNCs are the well managed and reputed companies in capital market having nearly one-fourth market-cap of the DSE.
The MCNs performance is consistent due to their company value, quality and good fundamentals which very much needed for a vibrant capital market, he opined.
On the other hand, EPS of Heidelberg Cement, Bata Shoe and British American Tobacco Bangladesh declined during the period under review.
The consolidated EPS of Heidelberg Cement plunged 72 per cent to Tk 2.69 for January-June 2019 as against Tk 9.55 for January-June 2018.
The Heidelberg noted that EPS declined by Tk 6.86 per share due to higher cost of goods sold and lower financial income.
The half-yearly earnings per share of Bata Shoes also plunged 56 per cent to Tk 20.50 for January-June, 2019, from Tk 46.42 in January-June, 2018.
The shoe maker informed they gave emphasis on the collection of dues and cut down on credit sales. As a result, turnover declined. But dues declined and net operating cash flow per share increased to Tk 28.01 from Tk 17.42 in the negative.
Bata Shoe also offered a big clearance sale to clear stock for more than 12 months old, which impacted the gross margins of the second quarter.
The BATBC’s EPS also plunged 35 per cent to Tk 21.17 in January-June 2019 which was Tk 32.36 in January-June 2018.
The BATBC informed that EPS decreased due to lower sales volume particularly in low segment, offset by growth in top segments.
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