National Feed Mill declares 1 paisa cash dividend after two-year gap

National Feed Mill Limited has recommended a marginal cash dividend of 0.10%—equivalent to 1 paisa per share—for the fiscal year ended 30 June 2025, marking its first dividend declaration in two years.

The decision comes after the company failed to recommend any dividend in the previous two fiscal years, a lapse that resulted in its classification under the Z-category, commonly known as junk stocks.

According to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) today (10 February), the cash dividend will be payable only to general shareholders, excluding sponsors and directors. 

The date, time and venue of the annual general meeting, along with the record date, will be announced later.

The company reported earnings per share of Tk0.03 for FY25, a notable improvement from a loss per share of Tk0.71 in the previous year. Its net asset value per share stood at Tk11.09 at the end of June 2025, slightly higher than Tk11.07 a year earlier, while net operating cash flow per share remained unchanged at Tk0.12.

The firm disclosed that its sponsors and directors hold 28.38 million shares out of a total of 93.36 million shares. As a result, the total cash dividend payable to general shareholders will amount to Tk6.49 lakh.

Despite the dividend announcement, investor sentiment remained cautious, with National Feed Mill’s share price falling by 5.41% today to close at Tk14 at the DSE.

The company was listed on the stock exchanges in 2015 after raising Tk18 crore through an initial public offering, issuing 1.8 crore shares with a face value of Tk10 each. The IPO proceeds were primarily allocated to repaying loans and supporting business expansion.

According to the fund utilisation plan, 40% of the proceeds were allocated to repaying loans, 45% to expansion, 5% to working capital, and the rest to IPO-related expenses. The issue was managed by ICB Capital and PLFS Investments.

However, concerns over the company’s financial health persists. In its audit opinion on the FY24 financial statements, auditor Islam Quazi Shafique & Co flagged discrepancies in reported long-term loans. While the company disclosed Tk63.51 crore in long-term borrowings, the auditor was able to verify only Tk61.55 crore, citing non-responses from banks to confirmation requests.

Meanwhile, sources said Bank Asia attempted to auction National Feed Mill’s assets in June 2025 to recover defaulted loans amounting to Tk47 crore, but the effort failed. The development underscores the company’s persistent financial strain despite its latest dividend declaration.