January 27, 2022 (MLN): Archroma Pakistan Limited (ARPL) has unveiled its financial results for the first quarter ended December 31, 2021, as per which the company posted its profit after tax of Rs750.16 million (EPS: Rs22) i.e. nearly 57% higher than the net profits of Rs480 million (EPS: Rs14) of the corresponding period last year.
The strong earnings are attributed to the higher volumetric sales during the period as it moved up by 32.6% to reach Rs6.76 billion, compared to the Rs5bn in the same period last year.
It is pertinent to mention that despite an increase of 31% in the cost of goods sold, gross margins have improved from 29.93% to 30.34%.
On the cost front, the distribution and marketing expenses jumped by 33% YoY, while administrative expenses shrank by 4.4% to stand at Rs150mn.
Moreover, the company witnessed impairment reversal worth Rs17.04mn during the first quarter that also supported the company’s bottom line.
Furthermore, the finance cost of the company increased by five folds in the wake of monetary tightening by SBP during the said quarter to clock in at Rs127.3mn compared to Rs24.15mn in SPLY.
On the taxation front, the company paid Rs294.8mn, down by 4% compared to the tax paid in the corresponding period last year.
|
Financial Results for the quarter ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
Dec-21 |
Dec-20 |
% Change |
|
|
Net sales |
6,761,955 |
5,100,296 |
32.58% |
|
Cost of goods sold |
4,710,432 |
3,573,642 |
31.81% |
|
Gross profit |
2,051,523 |
1,526,654 |
34.38% |
|
Distribution and marketing expenses |
(683,228) |
(513,509) |
33.05% |
|
Administrative expenses |
(150,861) |
(157,804) |
-4.40% |
|
Impairment reversal |
17,038 |
– |
– |
|
Other expenses |
(80,392) |
(61,256) |
31.24% |
|
Other income |
18,176 |
16,844 |
7.91% |
|
Finance cost |
(127,296) |
(24,150) |
427.11% |
|
Profit before taxation |
1,044,960 |
786,779 |
32.81% |
|
Taxation – net |
(294,796) |
(307,069) |
-4.00% |
|
Profit after taxation |
750,164 |
479,710 |
56.38% |
|
Earnings per share – basic and diluted (Rupees) |
21.99 |
14.06 |
56.40% |
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