Reckitt Benckiser declares record 1400pc cash dividend

FE REPORT | Saturday, 1 May 2021

Reckitt Benckiser, a UK-based listed multinational company, has declared 1400 per cent cash dividend for the year 2020 as the company earned record profit, thanks to the boom in disinfectant business amid the ongoing pandemic.

The board of directors of the company recommended the dividend and approved the audited financial statements for the year ended on December 31, 2020, at a meeting held Thursday, according to an official disclosure on Friday.

Market insiders said this is the highest-ever dividend declaration of the company since listing with Dhaka Stock Exchange (DSE) as well as any individual company in the country's capital market history so far.

The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on June 22 at 11:30 am through the digital platform. The record date is set on May 27.

The company has also reported earnings per share (EPS) of Tk 156.38, net asset value (NAV) per share of Tk 170.95, and net operating cash flow per share (NOCFPS) of Tk 290.57 for the year ended on December 31, 2020, as against Tk 131.06, Tk 142.64 and Tk 176.55 respectively of the year the previous year.

A company official said earnings per share increased by 19.32 per cent year-on-year in 2020 due to strong revenue growth driven by increased demand for personal hygiene products like Dettol and Harpic during pandemic.

He noted that Reckitt Benckiser maintained a strong performance in 2020 as customers also stocked up on Lysol disinfectant and Dettol soap amid the novel coronavirus fear.

The company disbursed 1250 per cent cash dividend in 2019, 700 per cent cash in 2018, 790 per cent cash in 2017, 775 per cent cash in 2016, and 650 per cent cash dividend in 2015, the DSE data showed.

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