13 multinationals expand business, profit margins under pressure

Muhammad Ayub Ali :

Despite the widespread struggles faced by most domestic companies in the stock market, 13 multinational corporations continue to strengthen their operations and expand their market shares.

These foreign firms recorded steady growth in the July–September quarter of the 2024–25 fiscal years, with their combined business increasing by more than 8 percent.

In the first quarter of 2025–26, the total income of these companies reached Tk 19,196 crore, up from Tk 17,749 crore during the same period of the previous year—an increase of Tk 1,447 crore, or 8.15 percent.

However, this growth in revenue has not translated into meaningful growth in profits. Rising raw material prices, higher operating and administrative expenses, increased interest rates, and growing tax burdens have collectively weighed down their earnings.

As a result, the multinational firms reported a combined net profit of Tk 2,150 crore for the July–September period, slightly lower than the Tk 2,156 crore earned in the corresponding quarter last year. This marginal decline of Tk 6 crore represents a fall of 0.27 percent.

Among the 13 listed companies — Grameenphone, British American Tobacco (BATBC), Robi Axiata, LafargeHolcim Bangladesh, Berger Paints, Marico, Singer Bangladesh, Heidelberg Cement, RAK Ceramics, Reckitt Benckiser, Bata Shoe, Linde Bangladesh, and Unilever Consumer Care11 posted profits during the first quarter.

Nine of these companies achieved modest profit growth in line with their business expansion.

However, Grameenphone and BATBC saw declines in profitability despite rising revenues, while the two loss-making companies recorded even deeper losses compared to last year.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, told The New Nation yesterday that foreign companies outperform local firms due to their more effective management, better market analysis, and greater transparency in auditing and accounting practices.

In addition, the heavy accumulation of loans by our local companies is also a significant factor behind their setbacks.

A notable trend highlighted by the data is the aggressive dividend policy adopted by most of these firms. Of the 13 listed multinationals, nine declared dividends exceeding their net profits from the last fiscal year.

These include Grameenphone, Marico, LafargeHolcim, Robi, Reckitt Benckiser, Singer, Linde Bangladesh, RAK Ceramics, and Unilever. Interestingly, Singer and RAK Ceramics paid out large dividend amounts despite reporting losses, effectively drawing funds from their reserves rather than from profits.

Collectively, these nine companies earned Tk 8,167 crore in net profit last fiscal year but distributed Tk 9,794 crore in dividends—Tk 1,626 crore more than their total earnings.

Among individual performers, British American Tobacco recorded the highest revenue during the three-month period, earning Tk 9,468 crore—an 11 percent increase from Tk 8,503 crore a year earlier.

Yet the company’s profitability was severely impacted by higher taxes on tobacco products in the 2025–26 fiscal years.

Out of it’s nearly Tk 9,500 crore incomes, BATBC paid over Tk 8,000 crore in VAT, duties, and taxes, up from Tk 6,823 crore last year. This additional Tk 1,200 crore tax burden significantly eroded its profits.

In terms of revenue growth, RAK Ceramics surpassed all others with a 54 percent surge, followed by Unilever Consumer Care at 25 percent and Marico Bangladesh at 23 percent.

Other companies such as Bata Shoe, Singer Bangladesh, and Reckitt Benckiser posted solid double-digit growth, while Linde Bangladesh, Berger Paints, LafargeHolcim, Grameenphone, and Robi Axiata recorded modest improvements ranging between 1 and 7 percent.