Most MNCs post higher revenue in Jul-Sep

​Most of the listed multinational companies are seeing significant growth in revenue after reopening of economy with the fading of pandemic this year.

Despite growth in revenue, some of the companies failed to maintain the growth in profit due to raw material price hikes and other cost escalation amid the global pandemic.

Seven multinational firms have published their financials for the July-September quarter of this year. Five of them witnessed growth in revenue while two others reported lower revenue compared to the same period of the previous year.

On Wednesday, the board of directors of British American Tobacco Bangladesh and RAK Ceramic held meetings, but their financial reports were not available till the filing of the story.  

According to data available, six multinational firms were able to maintain profits amid the pandemic.  

Of the seven companies, three saw an increase in their profits, and three witnessed drops in their profits compared to the previous year while one continued incurring losses.

On 23 July this year, the government imposed a countrywide strict lockdown for the third time as Covid-19 infection increased.

As a result, except for hygienic products makers, other companies saw a drop in sales and an increase in costs compared to the normal time.

As the infection rates came down, on 10 August the government withdrew the lockdown and reopened the economy.

HeidelbergCement continued incurring losses

HeidelbergCement Bangladesh – a multinational cement maker in the country – has posted 21.88% revenue growth in the July-September quarter but it incurred losses due to an increase in raw material prices and intense competition in the cement industry.

Despite its significant growth in revenue to Tk306.40 crore, its net losses stood at Tk10.78 crore.

A senior officer of the company told The Business Standard that, in the first quarter of this year, it managed growth in sales and posted handsome profits.

Later, it suffered a drop in its business after the price of clinker, which is used as its raw material, and the freight cost surged.

Singer and Linde suffer both revenue and profit drops

In this quarter, the consumer electronics and home appliances maker Singer Bangladesh and an industrial and medical gas producer Linde Bangladesh saw a drop in both revenue and profit.

Due to the lockdown in July and August, Singer's sales dropped by 26% and profits by 70%.

Over the July-September quarter of 2020, there was no lockdown to curb the pandemic as infection and death rates declined.

In the same quarter this year, its revenue stood at Tk460.59 crore and profit at Tk12.72 crore.

On the other hand, during the pandemic time, when oxygen demand surged significantly, Linde Bangladesh's business soared. But when the pandemic situation gets eased, its sales dropped by 9% and profit by 20.64% in the July-September quarter compared to the previous year.

An official of Linde Bangladesh said oxygen demand was high in the first half of 2021, resulting in an increase in both revenue and profit. But when the pandemic situation is getting eased, its sales declined.

LafargeHolcim, Marico, and Unilever saw growth in revenue and profit

LafargeHolcim Bangladesh, Marico Bangladesh, and Unilever Consumer Care have posted growth in revenue and profit in the three months to September compared to the previous year.

LafargeHolcim's profit rose 43% to Tk93.66 crore and sales 26% to Tk460.17 crore riding on its strengthening digital initiatives and optimising costs.

"The company has delivered yet another exceptional quarter backed by strong cost control and efficiency improvements," said Rajesh Surana, chief executive officer (CEO) of LafargeHolcim.

"In addition, our new product launches are highly successful and our customers continue to repose faith in our widest range of products and solutions. Our digital business has taken off to a new league of growth and creates a potential for continued momentum."

Marico Bangladesh – an India-based multinational company – has posted a 17% increase to Tk340.85 crore in revenue and 13% to Tk89.60 crore in profit.

Including its flagship brand Parachute, it manufactures various categories of products for hair nourishment, edible oil, and male grooming.

The company has recommended a 200% interim cash dividend for its shareholders.

Unilever Consumer Care also posted a 20.18% growth in revenue and a 15.87% growth in profit in the July-September quarter.

In this time, its revenue stood at Tk113.17 crore and net profit stood at Tk16.28 crore.

Grameenphone's revenue increases but profit declines

Grameenphone – a leading telecommunications service provider in the country – registered 1.8% year-on-year revenue growth but its profit fell 3.83% in the three months to September this year.

The revenue of the company stood at Tk3,621 crore and profit at Tk855 crore in this quarter.

Over the three months, the company acquired 16 lakh new subscribers to take the total number to 8.36 crore at the end of September.

"Grameenphone remains committed to meeting customers' demand for high-speed Internet connectivity and improving customer experience, continuing with network rollout and spectrum deployment in the third quarter," said Yasir Azman, CEO of the company.

Source: ​tbsnews