Best Holdings’ Bad Year: Dividend skipped as profit down due to political unrest
Best Holdings had paid a 10% cash dividend for FY24. This marks the first year it has failed to pay any dividend to shareholders
Best Holdings PLC, the parent company of Le Méridien Dhaka, saw its profit plunge 79% in FY2024-25 amid nationwide political unrest. Citing the steep decline in profit, the company's board has recommended zero dividends for shareholders this year.
Best Holdings today (30 June) published its FY25 annual financial statements, covering July 2024 to June 2025, nearly a year after the fiscal year ended, following a delay.
In its price-sensitive disclosure, the company attributed the decline to nationwide political unrest, which it said, adversely affected operations, leading to lower occupancy and reduced customer demand during the period.
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After its market listing in 2024, Best Holdings had paid a 10% cash dividend for FY24. This marks the first year it has failed to pay any dividend to shareholders.
According to disclosures published on the stock exchanges, the company's consolidated basic earnings per share (EPS) fell to Tk0.30, down from Tk1.43 in the previous fiscal year. Based on outstanding shares, net profit stood at Tk31.78 crore, down sharply from Tk141.19 crore a year earlier.
Following the disclosure, Best Holdings' share price fell 5.10% to Tk14.90 each.
The company had raised Tk350 crore through an initial public offering in 2024 under the book-building method. Institutional investors received shares at a cut-off price of Tk35, while general investors received shares at Tk24.
Best Holdings has not announced a date for its annual general meeting (AGM) or set a record date, saying both will be notified following a court order.
The company's consolidated net asset value per share stood at Tk53.56 at the end of FY25, down from Tk57.82 a year earlier. Net operating cash flow per share was Tk1.39, compared to Tk1.82 in the previous fiscal year.
In May, the Bangladesh Securities and Exchange Commission (BSEC) launched a special audit into Best Holdings PLC to examine how the company utilised funds raised through various public and private channels. The audit aims to ensure compliance with securities regulations governing the deployment of capital raised via the company's IPO, corporate bonds, and private placements. In a notice issued recently, the BSEC invited proposals from audit firms through a tender process.
