AGP’s profitability clocks in at Rs1.56bn in 2021

MG News | March 28, 2022 at 11:18 AM GMT+05:00

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March 28, 2022 (MLN): AGP Limited, a leading pharmaceutical manufacturing company has witnessed a slight decline in its net profits for the year ended on December 31, 2021, to Rs1.56 billion (EPS: Rs5.59) from Rs1.58bn profits (EPS: Rs5.67) earned in 2020, the company filing on PSX showed today.

Despite the drop in net profits, the company has announced a final cash dividend for the year ended December 31, 2021, at Rs2.5 per share i.e. 25%.

The top-line of the company increased by 6.83% to Rs7.42n. However, the company also witnessed an increase in its overall expenses but the company managed to earn profits on the back of higher revenues.

During the period, the company’s administrative and marketing expenses surged by 72.36% and 15.02% respectively whereas other expenses dropped by 14%. In addition, finance costs also declined by 41.17%.

Going forwards, AGP is looking to achieve sustainable growth by utilizing the company's own resources and focusing on synergies and integration of the acquired business. The company is making efforts to capitalize on its existing product pipeline, strengthen its portfolio by introducing new products and entering new therapeutic classes, penetrate deeper at the domestic level and mark its presence in international markets.

To pursue the company’s aggressive growth strategy, the management is focusing on infrastructure development and capacity enhancement in manufacturing facilities and capability building of our human capital.

The management is confident that these growth drivers, will translate and further uplift the performance of the Company in the foreseeable future.

Profit and Loss Account for the Year Ended on December 31, 2021 ('000 Rupees)
	Dec-21	Dec-20	%Change
Revenue-net	7,420,458	6,946,355	6.83%
Cost of Sales	(3,303,198)	(3,085,723)	7.05%
Gross profit	4,117,260	3,860,632	6.65%
Administrative expenses	(390,726)	(226,693)	72.36%
Marketing and selling expenses	(1,614,736)	(1,403,883)	15.02%
Other expenses	(157,202)	(183,172)	-14.18%
Other income	46,120	31,588	46.00%
Operating profit	2,000,716	2,078,472	-3.74%
Finance costs	(89,303)	(151,792)	-41.17%
Profit before taxation	1,911,413	1,926,680	-0.79%
Taxation	(346,488)	(339,253)	2.13%
Net profit for the period	1,564,925	1,587,427	-1.42%
Earnings per share - basic	5.59	5.67	-1.41%