Most listed multinational companies (MNCs) in Bangladesh experienced a sharp decline in profits during the April-June quarter, as persistent inflation, subdued consumer demand, and rising operating costs squeezed margins across key sectors.

According to stock exchange filings, combined net earnings of 14 listed MNCs dropped by 17% year-on-year to Tk 1,607 crore, despite a modest 6% growth from the previous quarter.

The earnings downturn affected firms in sectors including footwear, tobacco, electronics, and ceramics. Analysts attributed the decline to slowing sales, higher borrowing costs, and sustained pressure on input prices.

Shahidul Islam, CEO of VIPB Asset Management, said, “Corporate earnings, in general, were weak due to an economic slowdown, except in banking. Contractionary monetary policy is reducing inflation, but also suppressing demand, which is hitting sales and profits.”

Footwear manufacturer Bata Shoe incurred a Tk 10 crore loss in Q2, compared to a Tk 19 crore profit in the same period last year, following a 39% drop in sales. The company cited vandalism at retail outlets as a major cause of the disruption.

Singer Bangladesh reported a Tk 31 crore loss, reversing a Tk 25 crore profit a year earlier. Higher advertising and logistics costs, exchange losses on intercompany loans, and increased finance charges contributed to the setback.

British American Tobacco Bangladesh posted an 81% year-on-year drop in profits, while RAK Ceramics saw its losses multiply despite a rise in revenue.

Only a few firms, including Marico Bangladesh and Robi Axiata, posted profits, supported by better cost controls and selective demand growth.