Berger Paints recommends 525% dividend, highest in 8 years

Berger Paints Bangladesh Ltd saw its profit rise for the year ended March 31, 2025, as the company recommended its highest dividend in eight years.

The leading paint producer has recommended a 525 percent cash dividend for its financial year, the highest payout by the company since 2017, when it paid a 600 percent dividend.

The board's decision was disclosed in a price-sensitive information (PSI) notice published recently.

The company reported a net profit of Tk 336.97 crore for FY25, reflecting a 4 percent year-on-year growth.

Berger's consolidated earnings per share stood at Tk 72.66, up from Tk 69.92 in the previous year.

However, its consolidated net operating cash flow per share dropped to Tk 58.94 from Tk 139.64 a year earlier.

The company also announced a new investment plan involving the formation of a subsidiary named Jenson & Nicholson Packaging Ltd (JNPL), which will manufacture packaging products at the National Special Economic Zone.

Berger will hold a 51 percent equity stake in JNPL through an investment of Tk 5.1 crore, while its wholly owned subsidiary, Jenson & Nicholson (Bangladesh) Ltd, will contribute Tk 4.9 crore for the remaining 49 percent stake.

Additionally, the board has approved an amendment to its land lease agreement with the Bangladesh Economic Zones Authority (BEZA) to bifurcate the use of 39.41 acres of land.

Under the revised agreement, Berger will retain 38.25 acres, while JNPL will use 1.16 acres for setting up its plant.

As of May 31, 2025, sponsor-directors held 95 percent of Berger shares, while institutional investors owned 4.07 percent, foreign investors 0.20 percent, and the public 0.73 percent, according to Dhaka Stock Exchange data.

Berger Paints is a leading name in the paint industry, with a legacy spanning over 250 years. The company began its operations in the region in 1950, importing paints from Berger UK and later from Berger Pakistan.

By 1970, it had established its factory in Chattogram under Jenson & Nicholson (Bangladesh) Ltd, which was rebranded as Berger Paints Bangladesh Ltd on January 1, 1980, according to the company's website.