Multinational companies gain in earnings per share

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Six companies have registered healthy EPS growth, according to their audited reports

Most of the listed multinational companies have reported higher earnings per share (EPS) in 2018 compared to the previous year.

Nine out of 11 multi-nationals have so far disclosed their earnings on the Dhaka Stock Exchange (DSE) website for the year ended on December 31, 2018. 

Six companies have registered healthy EPS growth, according to their audited reports. However three companies registered negative growth in their EPS during the January-December 2018 period, compared to the same period in 2017. 

The companies whose EPS increased are Grameenphone, British American Tobacco Bangladesh (BATB), Linde Bangladesh, Heidelberg Cement, LafargeHolcim and Singer Bangladesh.

As per its audited financial statement, GlaxoSmithKline (GSK) Bangladesh saw the highest fall in loss per share to Tk52.75 in 2018, which was Tk55.56 in 2017. 

BATB on the other hand registered the highest EPS at Tk166.87, which was Tk130.50 previously. The company has given 500% cash and 200% stock dividend to its shareholders. 

Additionally, the MNCs also contributed the highest amount to market capitalization at the prime bourse. There are 11 multinational companies at the DSE, whose market capitalization accounts for approximately 24% of the around 310 listed companies.

Speaking to the Dhaka Tribune, experts have attributed this high performance of MNCs to management efficiency, business strategy, good corporate governance and ethical standards, and transparency in financial statements.

Multinational companies always attract the attention of investors and help keep the capital market stable. Since MNCs have a good track record in offering dividends, investors also prefer them over local companies.

Shakil Rizvi, president of DSE Brokers Association of Bangladesh (DBA), says: “The operational capacity and management efficiency level is lower in local companies than MNCs as the MNC officials  are also highly efficient and get paid more.

"Local companies must be made aware of the benefits of good governance," 

Grameenphone has reported Tk26.04 as EPS, Tk31.38 as Net Asset Value (NAV) per share and Tk44.74 net operating cash flow per share (NOCFPS) for the year ended on December 31, 2018 as against Tk20.31, Tk26.01 and Tk42.78 respectively for the same period in 2017.

Heidelberg Cement Bangladesh has reported Tk14.33 as EPS, Tk82.68 as NAV per share and Tk11.32 as NOCFPS for the year ended on December 31, 2018 as against Tk14.21, Tk83.17 and Tk14.09 respectively for the same period of the previous year. 

LafargeHolcim has reported Tk0.96 as Consolidated EPS, Tk13.41 as Consolidated NAV per share and Tk2.68 Consolidated NOCFPS for the year ended on December 31, 2018 as against Tk0.69, Tk13.15 and Tk1.17 respectively for the same period of the previous year.

The Singer Bangladesh has reported Tk11.96 Consolidated EPS, Tk30.13 Consolidated NAV per share and Tk - 6.06 as Consolidated NOCFPS for the year ended on December 31, 2018 as against Tk9.79, Tk28.17 and Tk3.12 respectively for the same period of the previous year. 

Linde Bangladesh has reported Tk65.96 as EPS, Tk293.90 as NAV per share and Tk76.87 as NOCFPS for the year ended on December 31, 2018 as against Tk62.60, Tk241.54 and Tk76.13 respectively for the same period of the previous year. 

The Reckitt Benckiser has reported Tk70.22 as EPS, Tk81.63 as NAV per share and Tk129.22 as NOCFPS for the year ended on December 31, 2018 as against Tk80.63, Tk64.28 and Tk93.37 respectively for the same period of the previous year. 

The Bata Shoe reported Tk72.79 as EPS, Tk347.11 as NAV per share and Tk2.75 as NOCFPS for the year ended on December 31, 2018 as against Tk82.34, Tk308.82 and Tk62.48 respectively for the same period of the previous year.
Source: https://www.dhakatribune.com

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