Berger Paints Bangladesh Limited, the leading paints company in the country has recently published its quarterly report for the period Apr’21-Jun’21. Revenue of the company has increased by 152.7% YoY from Tk 2,079.9 million in Q1’20 to Tk 5,255.1 million in Q1’21. Profit grew by 593.6% YoY from Tk 107.6 million in Q1’20 to Tk 746.2 million in Q1’21.
Revenue and Gross Profit Analysis
Revenue grew by 152.7% YoY mainly due to the normalcy of business in this quarter. In Q1’20, the country was in a strict lockdown which reduced the company’s sales by 54.4%. According to the company Secretary, due to strict lockdown and fear among people sales were almost zero during the first two months of Q1’20. The revenue of the company increased by 15.2% YoY compared to Q1’19 which is the usual growth level of the company. Gross Profit increased by 165.7% YoY mainly due to a 1.7% gross margin increased in Q1’21. However, gross profit is lower by 11.2% compared to Q1’19.
Profit after tax increased by 593.6% YoY mainly due to higher sales and operating margin. The operating margin increased from 6.9% in Q1’20 to 19.4% in Q1’21. Operating Income increased by 617.3% YoY mainly due to lower selling and administrative expenses compared to sales growth. The operating margin in Q1’19 was 15.3%.
In Q1’21 the company has rebounded well from the Q1’20 negative growth due to the first phase lockdown. However, from the end of Jun’21 to 10th Aug’21 due to the rising Covid-19 infection cases we had another strict lockdown where most of the business activities were shut down. Hence it is expected that the sales of Q2’21 may be impacted by the strict lockdown during this period.