Walton records drop in profits

Profits of Walton fell in the January-March period of 2022 due to a hike in global raw material prices and higher shipping charges.

The company's earnings per share (EPS) dropped to Tk 12.34 in the third quarter of 2021-22 while it was Tk 12.92 in the same period of the previous fiscal year.

In the nine months period (July 2021-March 2022), the local electronics, electric and home appliance maker's EPS dropped around 21 per cent to Tk 27.07. It was Tk 34.26 in the same period the previous year.

Walton's board of directors approved the company's quarterly financial statements at a board meeting yesterday.

Profits fell in the third quarter as the global raw material market faced a challenging period at the time and prices rose, according to Md Rafiqul Islam, company secretary of Walton Hi-tech Industries.

"Shipping costs also increased in recent months so our costs rose whereas the price of finished goods did not increase until last January," he said.

Walton already raised the prices of finished goods so the decline of profits slowed down in the third quarter and the impact of raising the products prices would be seen in the coming quarters, he added.

In the same board meeting, Walton decided to buy land measuring 588 decimals at a cost of Tk 44 crore excluding registration costs. The land will be used to expand the company.