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Profits of most listed multinational companies (MNCs) in Bangladesh declined sharply in the April–June quarter of 2025, as elevated inflation, declining consumer spending, and rising operating costs continued to weigh heavily on corporate earnings across multiple sectors.

According to disclosures filed with the stock exchanges, the combined net profit of 14 listed MNCs fell by 17 percent year-on-year to Tk 1,607 crore in Q2, despite a modest 6 percent improvement over the previous quarter.

Analysts say the earnings downturn reflects a broader economic slowdown triggered by the Bangladesh Bank’s ongoing contractionary monetary policy aimed at curbing inflation.

“Corporate earnings remained largely subdued across sectors, with the exception of banking. Weak aggregate demand, higher interest rates, and cost pressures are eroding margins,” said Shahidul Islam, CEO of VIPB Asset Management.

Annual average inflation climbed to 10.03 percent in June, up from 9.73 percent a year earlier, further denting purchasing power and dampening consumption.

Losses Deepen for Major MNCs

Several prominent MNCs reported significant losses in the quarter. Footwear manufacturer Bata Shoe Bangladesh posted a loss of Tk 10 crore for the period, reversing a Tk 19 crore profit recorded in the same quarter last year. The company attributed the performance decline to a 39 percent drop in sales, largely caused by vandalism at multiple retail outlets that disrupted operations.

Singer Bangladesh, a leading electronics and home appliance retailer, reported a Tk 31 crore loss compared to a Tk 25 crore profit in Q2 last year. The company cited higher advertising expenses, warranty claims, shipping demurrage, and surging finance costs as key contributors to the loss. A sharp depreciation of the taka against the euro and unrealised exchange losses on loans from its Turkish parent Arçelik further weighed on earnings.

British American Tobacco Bangladesh also reported an 81 percent year-on-year decline in profit to Tk 97 crore, impacted by lower sales volumes, rising input costs, and impairment charges related to the closure of its Dhaka factory site.

Tile and sanitaryware maker RAK Ceramics incurred a Tk 18.5 crore loss in the quarter, up significantly from a Tk 1 crore loss in the same period a year ago, despite a 15 percent rise in revenue to Tk 163 crore. The company attributed the result to weak market demand, with sales declining by 3 percent.

Select Firms Post Gains

Amid the broader downturn, a few companies reported improved earnings. Marico Bangladesh registered both revenue and profit growth, driven by stable demand for personal care products and ongoing cost optimisation efforts.

Robi Axiata, the country’s second-largest telecom operator, saw its quarterly profit surge 140 percent year-on-year to Tk 257 crore, despite a 2 percent decline in revenue to Tk 2,600 crore. A 31 percent drop in sales and distribution expenses was cited as the main driver of profitability.

Outlook Remains Cautious

Looking ahead, analysts remain cautious about the earnings trajectory of MNCs for the remainder of the year.

“High interest rates are putting pressure on companies with large debt portfolios, and that trend is likely to continue,” said Ali Imam, CEO of EDGE Asset Management.
“We don’t expect strong growth in the telecom sector, which is already mature. Meanwhile, construction-linked industries such as cement, steel, and paints are unlikely to recover soon due to liquidity constraints and a slowdown in private investment.”

Imam also noted that pressure on undisclosed wealth holders is dampening activity in the construction sector, further weakening its growth outlook.