Most MNCs see surge in 2019 earnings

Earnings of the most of the multinational companies listed on the country's stock market rose in 2019 compared to the previous year.

Market operators said the multinational companies performed well as usual in 2019 due to their strong fundamentals, brand value, well management and quality of products which helped them earn more.

The scenario, will however be different in 2020 due to the havoc, created by coronavirus scare.

The EPS of five multinational companies, out of eleven listed on the country's capital market, rose while one fall and one posted EPS in negative in 2019.

However, four companies are yet to declare dividend.

Currently, the listed MNCs account for 24 per cent of the total market cap of the Dhaka bourse.

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 GlaxoSmithKline, LafargeHolcim, Linde Bangladesh, Singer Bangladesh and Grameenphone rose between 3.44 per cent and 62 per cent in 2019 compared to the previous year.

The EPS of British American Tobacco Bangladesh declined marginally while Heidelberg Cement's EPS turned negative in 2019, according to statistics available with the Dhaka Stock Exchange.

However, the most of the listed MNCs are declaring significant amounts of cash dividends every year after their listing in line with the significant growth in profits.

Among the MNCs - GlaxoSmithKline, LafargeHolcim, Linde Bangladesh, Singer Bangladesh, GP and BATBC-- have declared dividends for the year ended on December 31, 2019.

GP and BATBC have reduced the dividend payout to their shareholders for the year ended on December 31, 2019 compared to the previous year, the DSE data showed.

The board of directors of Heidelberg Cement declared 'no' dividend for the year ended on December 31, 2019 as the company incurred a loss of Tk 186.4 million.

The Heidelberg Cement has also reported EPS of Tk 3.30 in the negative for the year ended on December 31, 2019 which was Tk 14.33 in 2018.

The company officials said the company incurred loss and EPS turned negative due to higher cost of goods sold and higher administrative expenses and lower financial income.

In 2018, the Heidelberg Cement Bangladesh disbursed 75 per cent cash dividend.

The GSK Bangladesh topped the list in terms of dividend declaration so far as the company approved 530 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company also disbursed 530 per cent cash dividend.

The Linde Bangladesh grabbed the second position in terms of dividend declaration in 2019 as the company declared 500 per cent cash dividend for the year ended on December 31, 2019, also the highest more than five years since 2015.

The BATBC offered 400 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company disbursed 500 per cent cash and 200 per cent stock dividend.

The largest market cap company in the country's stock market- GP- approved 140 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company disbursed 280 per cent cash dividend.

The board of directors of Singer Bangladesh has declared 77 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company disbursed 30 per cent stock dividend.

The LafargeHolcim declared 10 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company also paid 10 per cent cash dividend.

"The multinational companies are well-managed and have reputation of their product quality, making them to earn more and pay hefty dividends every year," said an analyst at a leading brokerage firm.

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