Berger Paints posts higher profit despite sales drop

Berger Paints Bangladesh Ltd, one of the largest paint makers in the country, said its profit grew in the first half of the current financial year even though overall sales dropped.

The revenue of the multinational company dropped 1.2 percent to Tk 1219 crore in the April-September period from a year ago, according to its financial statements.

It cut its raw materials cost by 3.5 percent during the period which boosted its gross profit, Berger said.

The cost of sales, which includes the cost of raw materials, stood at Tk 833 crore, which was 68 percent of total sales in the first two quarters, down from 70 percent of total revenue in the same period the previous year.

The paint maker said its net finance income almost doubled year-on-year to Tk 7.34 crore.

The company also posted higher income thanks to profit of its associates.

Berger posted 5.5 percent higher earnings to Tk 144.13 crore in April-September, up from Tk 136.49 crore the previous year, thanks to reduced cost of raw materials and higher net finance income.

Thus, the earnings per share (EPS) rose to Tk 31.08 from Tk 29.43.

The company also reported an increase in profits in the July-September quarter.