RAK Ceramics (Bangladesh) Limited has reported a loss of Tk39.59 crore for 2025, even as its revenue grew by 10.56%, mainly due to higher manufacturing costs, prolonged disruption in gas supply until June, and rising finance expenses.

According to its price-sensitive information (PSI) filed with the Dhaka Stock Exchange (DSE), the multinational ceramic manufacturer's sales rose to Tk737.33 crore in 2025 from the previous year, driven largely by increased production following uninterrupted LNG supply from July onward, which helped boost market sales.

Despite the revenue growth, the company's gross profit margin declined sharply to 13.19% from 17.19% a year earlier.

RAK Ceramics attributed the margin erosion to increased throughput costs, unabsorbed fixed costs incurred during the gas supply disruption up to June 2025, higher finance expenses arising from additional working capital borrowings, and increased provisions and write-offs of aged inventory.

With the latest loss, the company has posted back-to-back losses for the second consecutive year. In 2024, RAK Ceramics incurred a loss of Tk2.73 crore, although it also paid a 10% cash dividend that year.

Despite the widening losses, the board of directors has unanimously recommended a 10% cash dividend for general shareholders for 2025, amounting to Tk11.95 crore.

According to DSE data, sponsor-directors hold a majority 72.08% stake in the company and will not be entitled to the recommended dividend. The remaining 27.92% shares held by institutional investors, foreign investors, and general shareholders will receive the dividend payout.

The company also reported improvements in its operating performance, citing better trade receivable collections supported by a strengthened credit control framework, as well as successful renegotiation and extension of payment terms with vendors.

As a result, net operating cash flow per share rose significantly to Tk1 at the end of 2025, from Tk0.49 a year earlier.

RAK Ceramics has scheduled its annual general meeting (AGM) for 31 March through a digital platform. The record date for determining dividend entitlement has been set for 25 February.

Major business associations have appealed to Chief Adviser Muhammad Yunus for urgent personal intervention to defuse the escalating crisis at Chattogram Port, warning that an indefinite strike planned from tomorrow could trigger severe economic fallout just four days before the national election.

In an open letter dated today (7 February), the leaders of the Bangladesh Employers' Federation (BEF), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) said continued disruption at the country's main seaport would pose a serious threat to exports, essential commodity supplies and overall economic stability.

The letter was signed by BEF President Fazle Karim Ehsan, BGMEA Acting President Selim Rahman, BKMEA President Mohammad Hatem and BTMA President Showkat Aziz Russell.

Describing Chattogram Port as the "lifeline of the national economy," the business leaders noted that it handles around 99% of the country's container traffic and 78% of seaborne trade. Any prolonged shutdown, they warned, could cause irreparable damage to key export sectors, particularly ready-made garments, while creating artificial shortages of essential goods ahead of Ramadan.

They also cautioned that vessel congestion and cargo delays would result in massive demurrage payments, putting additional pressure on the country's foreign exchange reserves.

While commending the interim government's reform initiatives and preparations for what they described as a free, fair and neutral election under Yunus's leadership, the signatories said they were deeply concerned by the "deep impasse" at the port.

The situation, they said, has been aggravated by the announcement of continuous strikes and shutdowns at the port terminals and outer anchorage from 8 February by the Chattogram Bandar Rokkha Sangram Parishad, a platform of port workers and employees opposing the proposed lease of the New Mooring Container Terminal (NCT) to UAE-based DP World.

According to the letter, seven consecutive days of dialogue and coordination meetings involving various stakeholders have failed to produce a breakthrough. The business leaders pointed to the controversial NCT lease plan as the core trigger of the unrest, saying the situation has become more volatile due to legal actions and investigations initiated against protesting workers.

"At this critical juncture, four days before the national election, any disruption to the country's supply system and economic activities is undesirable for all of us," the letter said, urging the chief adviser to take immediate steps to promote mutual understanding among workers, port authorities and other stakeholders.

The appeal comes as port workers prepare to resume an indefinite strike after a brief 48-hour suspension following talks with Shipping Adviser Brigadier General (retd) M Sakhawat Hossain.

The protest movement began in late January over the government's plan to hand over the NCT to DP World. A six-day work abstention earlier last week brought port operations to a standstill, leaving thousands of containers stuck at yards and dozens of vessels waiting at outer anchorage, with losses running into billions of taka.

Although the strike was temporarily paused after negotiations with the shipping adviser, labour leaders warned that the suspension was conditional. They accuse the port authority of acting in bad faith by transferring protesting employees and seeking anti-corruption probes and travel bans against labour leaders.

Protesters are demanding the cancellation of the NCT lease deal, removal of the port chairman over alleged corruption, withdrawal of cases filed against workers and assurances that no further punitive measures will be taken.

Trade bodies, particularly in the export sector, have repeatedly warned that renewed disruptions could lead to order cancellations, shipment delays, price hikes and potential job losses. With Ramadan approaching, business leaders fear supply chain instability could also push up prices of essential commodities.

Port authorities, on the other hand, have accused the strikers of disrupting national trade and have taken a series of administrative and legal steps, further hardening positions on both sides. Operations at the port remain fragile during the current pause, with stakeholders bracing for fresh disruptions if the strike resumes as announced.

With the election scheduled for 12 February and economic sensitivities running high, the business community's appeal underscores growing concern that failure to resolve the standoff quickly could amplify economic pressures and spill over into the broader political and social landscape.

The benchmark index of the Dhaka Stock Exchange continued its upward trend last week, supported by broad investor participation and sustained buying in undervalued blue-chip stocks. Improving sentiment around the upcoming national election encouraged selective buying across key sectors.

The market opened the week strongly, maintaining positive momentum for three consecutive sessions. Although some profit-taking appeared in the final session, buyers largely dominated, pushing the market higher by week's end. The DSEX rose 80.4 points, or 1.6%, to close at 5,234 points. Average daily turnover increased 11.2% to Tk644 crore, reflecting heightened investor activity.

Banking stocks led trading, accounting for 18.6% of total turnover, followed by pharmaceuticals at 14.8% and textiles at 9.7%. Engineering shares posted the highest weekly gains, climbing 5.7% as investors picked up stocks that were previously oversold. The banking sector added 3.8%, while mutual funds rose 3.4% on renewed buying interest.

Not all sectors fared well. General insurance fell 3.9%, life insurance dropped 2%, and telecom slid 1.5% amid profit-taking. Non-bank financial institutions saw sharp price swings, with International Leasing, Premier Leasing, FAS Finance, Peoples Leasing, and GSP Finance among the top gainers. On the downside, DBH First Mutual Fund led losses, along with Asia Pacific Insurance, Sonar Bangla Insurance, Rupali Life Insurance, and Rahim Textile.

BRAC Bank, Islami Bank, Asiatic Laboratories, Dominage Steel, and Simtex Industries were the most actively traded stocks, showing sustained interest in large-cap, fundamentally strong companies. Key contributors to the index's rise included Islami Bank, Walton, Al-Arafah Islami Bank, BRAC Bank, and Renata.

Analysts said that improving political clarity, steady participation from both institutional and retail investors, and selective accumulation in blue-chip stocks supported the market's gains. While short-term volatility from profit-taking may continue, the overall trend appears constructive as long as macroeconomic and political conditions remain stable.

Once thriving amid growing demand, Bangladesh's paper industry is now grappling with rising costs, shrinking sales, and gas shortages, raising fears of a sector-wide collapse. Most listed firms three out of five reported a decline in profit for the second quarter (October–December) of the current fiscal year, while market leader Bashundhara Paper Mills incurred a heavy loss.

Of the six paper firms listed on the bourses, five have published financial statements for the first six months through December 2025. Khulna Printing and Packaging, however, has remained non-functional and has not released its financials for a long time.

Industry insiders said high inflation, gas shortages, and banking constraints for importing raw materials have severely hurt the sector.

Sector under pressure

Mustafa Kamal Mohiuddin, secretary general of the Bangladesh Paper Mills Association (BPMA) and chairman of Magura Multiplex, told The Business Standard, "The country's paper industry is almost on the verge of collapse due to three main reasons: the dollar crisis for importing raw materials, the gas shortage, and banking constraints. Most mills are closed, and only 10–15 are operating at lower capacity. Entrepreneurs are struggling to stay afloat."

He added that insufficient gas supply has forced mills to seek alternatives like LNG and coal imports, but banking restrictions have hindered these efforts. Mohiuddin also noted that digitalization has reduced overall paper demand, though specialized papers such as colour, art paper, hardboard, and tissue continue to see steady demand.

Performance of listed firms

In Q2 (October–December), Sonali Paper & Board Mills reported a 20% decline in revenue to Tk77.22 crore and a 17% drop in net profit to Tk10.15 crore compared to the same period last fiscal year. In H1 (July–December), however, the company recorded modest growth, with revenue up 4% to Tk159.60 crore and profit rising 7.64% to Tk19.44 crore, driven largely by first-quarter performance.

Md. Rashedul Hossain, company secretary, attributed the Q2 decline to seasonal factors, including school closures.

Hakkani Pulp & Paper Mills saw an 18% fall in Q2 revenue to Tk26.75 crore and a 9% drop in profit to Tk32 lakh. H1 revenue declined 6.58% to Tk58.05 crore and profit fell 7% to Tk52 lakh. The company attributed the decline to higher costs of sales, despite an increase in tissue segment sales, while revenue from newsprint dropped.

Mixed results for Magura Group firms

Two Magura Group concerns posted mixed results. Magura Multiplex reported a 7.4% rise in profit in H1, while Monospool Bangladesh saw a 3.56% drop to Tk4.71 crore and Tk7.55 crore, respectively.

Both firms recorded growth in Q2, with chairman Mustafa Kamal Mohiuddin attributing H1 performance to effective cost control.

Bashundhara faces big los

Bashundhara Paper Mills suffered a massive Tk249 crore loss in H1 FY26, citing raw material shortages, rising utility and borrowing costs, and price hikes.

The company had also recorded a Tk330 crore loss in the previous fiscal year. Its loss per share in Q2 reached Tk14.34, up from Tk5.84 in the same period last year. H1 revenue plunged 72% to Tk113 crore, down from Tk410.47 crore in FY25, while finance costs soared 31% to Tk204 crore.

An official, speaking on condition of anonymity, said, "Operating profitability declined sharply due to raw material scarcity, higher utility costs, rising input prices, and increased borrowing costs. As a consequence, EPS has decreased significantly."

As of December, Bashundhara Paper Mills' long-term loans stood at Tk2,118 crore, with short-term borrowings of Tk581.85 crore.