Two Beximco firms post lower profits

Bangladesh Export Import Company Ltd (Beximco) witnessed a massive drop in profit in the last financial year while Beximco Pharmaceuticals Ltd also reported lower earnings owing to a spike in the cost of production.

Beximco Ltd made a profit of Tk 709.59 crore in 2022-23, down more than 43 percent from Tk 1,255.21 crore in 2021-22. Thus, the earnings per share dipped to Tk 7.92 from Tk 14.01, according to the financial statements. 

The EPS decreased owing to a decline in export and local demand due to the slowdown in the global economies and the increase in materials costs amid disruption in the international supply chain caused by the US dollar crisis and the Russia-Ukraine war, said Beximco in a filing on the Dhaka Stock Exchange (DSE).

A hike in gas and electricity prices also affected the cost of production, it said. 

Beximco's board of directors recommended a 10 percent cash dividend for the year that ended on June 30. Its shares closed unchanged at Tk 115.60 yesterday.

Beximco Pharmaceuticals posted a profit of Tk 461.28 crore in FY23, a fall of 9.93 percent from Tk 512.14 crore in FY22. Therefore, the consolidated EPS slipped to Tk 10.34 from Tk 11.48.

The EPS decreased primarily because the company earned a non-recurring pre-tax income of Tk 61.9 crore between July 2021 and June 2022 as a vaccine distribution fee under an agreement. As the contract concluded, there was no income from the source in FY23, said the company in a post on the DSE.

Additionally, rising costs, driven by a sharp depreciation of the taka against the USD and higher inflation, further impacted the EPS, it said.

The board of the pharmaceuticals company recommended a 35 percent cash dividend for FY23. Its shares traded at Tk 146.20 yesterday, unchanged from the previous session.