Walton profit falls 24% in FY25

Walton Hi-Tech Industries PLC (WHIPLC) saw its profit decline in the financial year that ended on June 30, 2025, due to reduced consumer demand and higher finance costs.

The company reported a profit of Tk 1,036.62 crore for the financial year, down 24 percent year-on-year.

Its earnings per share stood at Tk 34.22 in FY25, compared to Tk 44.78 in FY24, according to a price-sensitive information (PSI) disclosure made by the company yesterday.

The company attributed the fall in profit to lower revenue, higher finance costs, and increased distribution expenses.

Its revenue dropped by Tk 429.86 crore in FY25, mainly because of subdued consumer demand following the political changeover last year.

The company attributed the fall in profit to lower revenue, higher finance costs, and increased distribution expenses

The company said its finance costs rose to 6.33 percent of sales in FY25 from 6.11 percent in FY24, driven by higher interest rates and foreign currency losses of Tk 123.60 crore resulting from the continued devaluation of the taka.

Its selling and distribution expenses also went up due to market expansion efforts, further weighing on operating margins, the disclosure added.

Net operating cash flow per share stood at Tk 58.20 in FY25 against Tk 56.96 in FY24.

The board of directors recommended a 175 percent cash dividend and a 10 percent stock dividend for FY25, the lowest since 2020 when the company declared a 200 percent dividend.

Walton said the stock dividend would help finance its lithium-ion battery project.

In a separate PSI, the board approved a memorandum of understanding (MoU) on the proposed merger of Walton Digi-Tech Industries Ltd (WDIL) with WHIPLC.

The merger is subject to the consent of shareholders and creditors, approval from the High Court, and the execution of necessary agreements to maintain WHIPLC's distinct brand identity, it said.

WDIL, an IT company operating for more than eight years, manufactures hi-tech products across multiple categories. It currently offers over 123 products under 36 brands, according to the Bangladesh Investment Development Authority.

The merger is expected to strengthen WHIPLC's business portfolio and provide a competitive edge through vertical integration, enhancing its range of products to include laptops, desktop PCs, printers, mobile phones, printed circuit boards, IT accessories, electric bikes, and more, the company said.

As of July 31, 2025, the sponsor and director group of WHIPLC holds the largest share of the company, with a total stake of 61.09 percent, the general public holds  38.18 percent of the shares, according to the Dhaka Stock Exchange data.