AGP Limited observes marginal increase in half yearly profits

MG News | August 24, 2020 at 02:20 PM GMT+05:00

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August 24, 2020 (MLN): AGP limited has posted a marginal increase in net profits to Rs 754.7 million for the half year ended June 30^th, 2020, from Rs 743 million earned in the corresponding period last year.

The earnings per share of the company also rose by around 1.89% YoY to Rs 2.7 million from Rs 2.65 million.

During the period, the net revenues of the company from sales were remained steady as it recorded at Rs3.173 billion, reflecting a negligible growth of 0.45% compared to the same period last year.

Cost of sales increased by 8% mainly on account of price escalation of imported materials due to considerable devaluation of Pak Rupee. Resultantly, gross profit margin for the period under review diminished by 3 ppts from 58% to 55%.

Furthermore, the Company implemented stringent cost control measures and accordingly, marketing and selling expenses declined by 17.87% YoY. However, administrative expenses have increased by 31.12% YoY, mainly on account of higher personnel costs associated with growth in business operations.

Alongside financial results, the company did not any cash dividend for the period mentioned above.

Profit and Loss Account for the Half Year Ended on June 30th, 2020 ('000 Rupees)
	Jun-20	Jun-19	%Change
Revenue-net	3,173,671	3,159,327	0.45%
Cost of Sales	(1,429,285)	(1,322,628)	8.06%
Gross profit	1,744,386	1,836,699	-5.03%
Administrative expenses	(100,357)	(76,537)	31.12%
Marketing and selling expenses	(527,754)	(642,611)	-17.87%
Other expenses	(113,315)	(99,620)	13.75%
Other income	10,894	4,097	165.90%
Operating profit	1,013,854	1,022,028	-0.80%
Finance costs	(89,653)	(107,191)	-16.36%
Profit before taxation	924,201	914,837	1.02%
Taxation	(169,437)	(171,742)	-1.34%
Net profit for the period	754,764	743,095	1.57%
Earnings per share - basic	2.70	2.65	1.89%