Reckitt announces highest dividend among listed firms

Society's heightened awareness of maintaining hygiene in the pandemic's aftermath has come to reflect in profits of Reckitt Benckiser Bangladesh, so much so that it announced 1,650 per cent cash dividend for shareholders last year, the highest among listed companies.

The health and hygiene product manufacturer's profits rose 9.36 per cent year-on-year to Tk 80.8 crore in 2021.

Based on the higher profits, the multinational's board of directors announced a dividend of Tk 165 against each share whose face value is Tk 10.

This is the biggest dividend to be announced in the history of Reckitt Benckiser Bangladesh, which sells Dettol, Harpic and Lizol.

The company disbursed cash dividend of 1,400 per cent in 2020, 1,250 per cent in 2019 and 700 per cent in 2018, according to the Dhaka Stock Exchange (DSE) data.

Due to the pandemic, people became more cautious about maintaining hygiene so the use of its products rose and it contributed to the profits, said a top official of an asset management company having investments in the shares.

Though demand for the products comparatively fell last year, the profit rose as net operating cost dropped, he said.

The payment of such a big dividend by a listed company is a good sign for the market, he said, adding that when listed companies disburse good dividends, it attracts investors.

However, stocks of Reckitt Benckiser Bangladesh dropped 1.66 per cent to Tk 5,372 yesterday at the DSE. People's increased awareness and use of hygiene products translated to its sales growth of 29 per cent to Tk 533 crore in 2020, he added.

Its paid-up capital is Tk 4.72 crore.

Sponsors and directors of the company hold 82.96 per cent shares of the company.

Another 3.77 per cent is held by the government, 4.28 per cent institutional investors, 2.94 per cent foreign investors and 6.05 per cent general investors, according to the DSE data.