ACPL: Lower sales erode net earnings

October 22, 2021 (MLN): Attock Cement Pakistan Limited (ACPL) has unveiled its 1QFY22 financial results whereby the company posted a net profit of Rs373mn, down by 46% YoY against the net profit of Rs692mn earned in the corresponding period last year.

This has translated into earnings per share (EPS)-basic and diluted of Rs2.42 during 1QFY22, registering a decline of 28.2% YoY as opposed to EPS of Rs3.37 in the same period last year.

The decrease in ACPL’s consolidated earnings was mainly attributable to lower volumetric sales.

During the period under review, the company’s revenue dipped by 21.6% YoY to Rs5.73bn due to lower sales, primarily on the back of a reduction in unfeasible exports. As a result, the gross profits plunged by 39% YoY to Rs1.04bn despite a 16% decrease in the cost of sales, shrinking gross margins by 5ppt to 18%.

On the expense front, distribution and administrative expenses witnessed a decline of 42% YoY and 13% YoY to reach Rs370mn and Rs186mn, respectively on an account of a decline in export & total dispatches. While the company bore other expenses which hiked by 53% YoY to Rs23mn.

Some of the positive financial highlights include an increase in other income that jumped by 2.6 times YoY to Rs43 billion and a substantial decline in the finance cost of the company which plunged by 48% YoY to Rs46mn amid a lower interest rate regime, providing some breathing space to bottom-line.

Meanwhile, the company paid taxes of Rs81mn during the said period.

Consolidated Financial Results for the quarter ended September 30, 2021 ('000 Rupees)

 

Sep-21

Sep-20

% Change

Revenue from contracts with customers

 5,732,381

 7,308,603

-21.57%

Cost of Sales

 (4,694,693)

 (5,598,727)

-16.15%

Gross Profit

 1,037,688

 1,709,876

-39.31%

Distribution cost

 (370,830)

 (636,477)

-41.74%

Administrative expenses

 (186,334)

 (213,162)

-12.59%

Other expenses

 (23,000)

 (15,000)

53.33%

 Other income

 43,097

 16,479

161.53%

 Profit from operations

 500,621

 861,716

-41.90%

Finance cost

 (46,301)

 (89,037)

-48.00%

Profit before income tax

 454,320

 772,679

-41.20%

Income tax expense

 (81,000)

 (81,000)

0.00%

Profit for the period

 373,320

 691,679

-46.03%

Earnings per share – basic and diluted (Rupees)

 2.42

 3.37

-28.19%

 

Copyright Mettis Link News

 

Posted on: 2021-10-22T10:34:24+05:00

27602