Berger Paints’ Q2 profit jumps 24pc on higher sales, lower finance costs

Berger Paints secured 24 per cent year-on-year profit growth, to Tk 784 million, in the second quarter, supported by higher sales, price adjustments and lower finance costs.

The country’s leading paint manufacturer reported consolidated earnings per share (EPS) of Tk 15.97 for July-September this year, up from Tk 13.08 in the same quarter a year earlier.

The company attributed the earnings growth primarily to higher sales, price adjustments in response to rising raw and packaging material costs, and lower finance costs following a reduction in interest expenses on Usance Payable at Sight (UPAS) loans.

A lower effective tax rate and favourable adjustments to previously recognised tax liabilities following the enactment of the Finance Act 2026 also contributed to earnings growth, according to the company’s earnings note.

The multinational paint maker, which follows the April-March financial year, reported 13 per cent year-on-year revenue growth, to Tk 7.04 billion, in the September quarter.

The company’s half-yearly profit also jumped 74 per cent year-on-year to Tk 2.60 billion, while revenue surged 13 per cent to Tk 15.18 billion during the period.

Net operating cash flow per share (NOCFPS) improved significantly to Tk 25.46 for April-September this year, compared with Tk 6.24 in the corresponding period of the previous year, driven by higher sales, stronger customer collections and improved working capital management.

Berger is one of the well-performing stocks, with a proven track record and stable growth in profit and sales even in adverse business climates.

Its stock closed at Tk 1,449 per share, a 0.46 per cent decline from the previous session, on the Dhaka Stock Exchange (DSE) on Thursday.

Revised investment for third factory

Berger Paints has raised its investment in the third factory at the National Special Economic Zone in Mirsarai by Tk 2.04 billion to Tk 11.84 billion, citing upgraded safety systems, increased automation and digitalisation, and the impact of inflation and foreign exchange volatility.

Upgraded safety systems, digitalisation and automation features are expected to improve operational efficiency, product quality, traceability and workplace safety, the company said.

The expected commencement of production at the new facility has been rescheduled for April 2028.

The paint maker said the project would establish a modern, technologically advanced manufacturing facility to support its long-term growth strategy and strengthen its competitive position in the market.

Annual performance

Berger Paints posted a record profit of Tk 3.72 billion in the year ended March 2026, marking 10 per cent year-on-year growth, driven by higher sales and a sharp reduction in foreign exchange losses amid a more stable currency market.

Riding on the record earnings, the board of directors recommended a 525 per cent cash dividend for the year, unchanged from the previous year.

Source: The Business Standard