Reckitt Benckiser (Bangladesh) Limited, one of the leading FMCG companies in Bangladesh has recently posted its half-yearly financial report. Revenue of the company decreased by 3.0% YoY from Tk 2,585.7 million in H1’20 to Tk 2,507.6 million in H1’21. However, profit increased by 7.9% YoY from Tk 271.7 million in H1’20 to Tk 293.1 million in H1’21.
Revenue Analysis
Revenue decreased by 3.0% YoY in the first six months of the fiscal year mainly due to 11.2% sales decrease in the Apr-Jun’21 period compared to the same period last year. The decrease in growth might be attributable to the excessive competition in the personal hygiene segment. Since the pandemic outbreak, there has been a surge of personal hygiene brands due to excessive demand. Gross Profit also decreased to 54.9% from 56.0% in the same period last year.
Profit Analysis
Profit after Tax increased by 7.9% YoY from Tk 271.7 million in H1’20 to Tk 293.1 million in H1’21. The increase in profit is mainly attributable to lower net operating expenses and lower tax payments. Operating profit decreased by 12.5% YoY mainly due to lower sales and lower gross profit margin compared to the same period last year.
Future Ahead
The sales of the company decreased even after the 2nd phase of lockdown in the April-June quarter. This might be due to the excessive competition in the personal hygiene segment. Now the country is facing its 3rd phase of lockdown and the competition in the personal hygiene segment is expected to sustain in this quarter.
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