AGP Limited: On the up and up

March 13, 2020 (MLN):  Continuing with the growth momentum, AGP Limited has unveiled net profits of Rs 1.44 billion for the year 2019 against the profits of Rs 1.2 billion reported in 2018, marking a growth of 20% YoY.

During the year, the company’s net revenues jumped by 16% YoY on the back of strong sales supported by robust growth in sales to Afghanistan. The cost of sales also rose to 10.79% YoY due to Rupee devaluation and increase in prices of raw materials, nevertheless, the company managed to uplift gross profits by 20.3 YoY on the back of better sales performance coupled with production efficiencies.

This has led the gross margins to lock in at a high 59% against 56% in 2018.

With regards to the company’s major expense heads, the marketing and selling expenses were up by 12% YoY due to rise in general inflation and growth in business operations.

Moreover, due to upsurge in interest rates, the company’s finance cost grew by 13.4% YoY.

Overall, the encouraging results yielded earnings per share of Rs 5.17 per share, exhibiting an increase of around 20% YoY.

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