Reckitt Benckiser to pay record 1,250% cash dividend

Reckitt Benckiser (Bangladesh) Limited, a subsidiary of the world's leading consumer health and hygiene company, will pay 1,250 percent cash dividend to its shareholders for the financial year 2019.

It means the investors will get Tk125 against each of their shares. This is also the highest dividend declaration of the company since listing on the Dhaka Stock Exchange (DSE).

The annual general meeting of Reckitt Benckiser is slated for June 3 where the company's recommended dividends and financial report will be approved. 

The company has decided that the record date will be May 11. If the record date falls on the general holidays due to further extension of the nationwide shutdown, it will be the fourth market day after the resumption of trading in the bourses.

Reckitt achieved record sales and profit growth in the last financial year and predicted a stronger than expected performance in 2020 as customers stocked up on Lysol disinfectants and Dettol soaps ahead of the coronavirus lockdowns, said a company insider.

"The boom in demand has come as the company had been battling intense competition in the health and hygiene industry. Our business is more resilient now than it was a few months ago," the official said, addingReckitt Benckiser is quickly adjusting to a world where personal hygiene has become more important than ever.

"The company wants to develop its online business and introduce more products and quantities of its popular hygiene brands such as Lysol and Dettol."

Last year, Reckitt Benckiser Bangladesh's net profit achieved a record 87 percent growth to Tk61.93 crore, and its earnings per share (EPS) were Tk131.06.

Also, in the first quarter of the current financial year, the company's net profit rose by 56 percent to Tk11.36 crore and its EPS were Tk24.04.

During this time, the company's sales increased by 16 percent to Tk120.15 crore. It is a new record for the first quarter.

Reckitt was listed with the DSE in 1987. Now among all listed companies in the stock exchange, Reckitt's share is the most valuable.

The closing price of the company's each share was Tk3,139 at the DSE on March 25.

Of the total share of the company, Reckitt Benckiser Group PLC holds 82.96 percent, the government holds 3.77 percent, institutional investors 3.49 percent, foreign investors 3.01 percent and general investors hold 6.77 percent.