Berger Paints’ Q1 profit falls 11%

Berger Paints Bangladesh's profit declined in the April-June quarter this year, which the company attributed to a rise in the cost of sales.

The paint manufacturer's financial year starts in April. It reported a profit of Tk 85.68 crore in the first quarter of its financial year 2025-26, down 11 percent year-on-year.

According to its financial statements, consolidated earnings per share (EPS) stood at Tk 18.48 for the April-June quarter of 2025, whereas it was Tk 20.74 for the same period in 2024.

The company attributed the decline in EPS mainly to the devaluation of the local currency, saying it drove up the cost of raw materials and consequently increased the cost of sales.

Its consolidated net operating cash flow per share (NOCFPS) dropped to Tk 35.32 in the negative in the April-June period of 2025, from Tk 17.81 in the negative in the same period of the preceding year.

Berger said the significant decrease in the NOCFPS was primarily due to a rise in import payments against letters of credit deferred under "Usance Payable at Sight" (UPAS).

A UPAS letter of credit is a financing arrangement where the exporter gets paid upfront, and the importer makes the payment at a later date as specified in the usance terms.

As per data from the Dhaka Stock Exchange as of June 30, 2025, sponsors and directors held 95 percent of the company's shares, while institutions held 4.03 percent, foreign investors 0.20 percent, and the general public 0.77 percent.