Bashundhara Paper Mills profit grows 45% on rising tissue paper sales

Bashundhara Paper Mills Ltd, one of the leading paper mills in the country, has posted a 45% profit growth in the 2020-21 fiscal year following an increase in demand for its products in the local market as well as a surge in export.

The company registered Tk928 crore in annual revenue, an 8% growth from the previous year's Tk854 crore, according to its Company Secretary M Mazedul Islam.

The sales growth was derived from two main sources – the increased demand for its market-leading tissue papers, hygiene products and more exports of paper and tissue paper, sanitary napkins, wet wipes, etc.

Over the entire fiscal year, although educational institutions remained closed due to the pandemic, which kept the demand for papers a little subdued, the company kept producing various types of new products for sales growth leading both its local and export market sales, said the company secretary.

Paper accounted for Tk375 crore in annual revenue, followed by tissue papers generating Tk329 in revenue, paper sack products Tk7.19 crore, mosquito coil Tk14.21 crore, and hygienic products including sanitary napkins that generated Tk161.48 crore in annual revenue.

"Exports in the 2020-21 fiscal year grew by more than Tk27 crore," Mazedul Islam told The Business Standard that means the company already achieved its Tk100-crore-export milestone as exports were at Tk73.8 crore.

Of the exports, tissue papers contributed a maximum of Tk82.61 crore, paper Tk18.58 and hygiene products Tk0.27 crore.

The company recommended a 12% cash dividend for its shareholders for the 2020-21 fiscal year while its earnings per share increased to Tk2.37 from Tk1.64 a year ago.

Net asset value per share increased to Tk45.81 at the end of last June.

On 28 December, the company will arrange its shareholders' annual general meeting virtually.

The company has disbursed a 10-20% cash dividend each year since it was listed in 2018.

More than 70% of its shares are owned by the sponsors and directors, while institutional investors hold 6.75% and over 22% of shares are in the hands of general investors.

Bashundhara Paper shares closed 0.7% lower to Tk47.6 on Sunday in the Dhaka Stock Exchange.