National Foods posts 38% jump in profits during FY22

September 09, 2022 (MLN): National Foods Limited (PSX: NATF) has witnessed a 38% YoY increase in its profits that clocked in at Rs2.72 billion (EPS: Rs10.4) for the fiscal year ended June 30, 2022, against Rs1.97bn (EPS:7.54) reported in a previous fiscal year.

Along with the results, the board of the company recommended a final cash dividend for the year ended June 30, 2022, at Rs5 per share i.e.,100%.

This improvement in earnings is attributed to higher gross profits.

According to the financial results, net sales of the company recorded a healthy growth of 32% YoY to clock in at Rs45.5bn, mainly due to brand and consumer-led initiatives. However, the cost of sales increased by 31% to stand at Rs32.5bn which kept the gross margins of the company.

On the expenses front, NATF reported an 18% YoY increase in distribution costs while both other expenses and administrative expenses incurred by the company moved up by 2x YoY, affecting the financial health of the company.

Notably, impairment loss on trade debts saw a jump of 45.5% YoY to Rs47.4mn.

On the other hand, the other income of the company showed a fivefold increase to Rs646mn.

During the year, the financial charges went up by 47% YoY due to a higher policy rate while the company paid taxes of Rs898mn, compared to Rs656mn in FY21.

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