January 29, 2020 (MLN): Archroma Pakistan Limited (ARPL)’s profitability for the quarter ended December 31, 2019, has remained stationary at Rs 333 million with earning per share clocked in at Rs 9.7.
Although ARPL’s topline (Rs.4.6 billion) grew by nearly 13.8%, its cost of sale (Rs.3.4 billion) rose by a greater margin (24.6%), bringing down gross margins (27%) by 6ppts.
As per the financial results announced by the company, Distribution and marketing expenses increased by 9.37% (Rs486.6 million), administrative expenses increased by 12.84% (Rs144.4 million), whereas, other expenses decreased by 55.39% (Rs40.3 million).
Even though the company witnessed 64.57% decline in finance cost to Rs83.5 million, still the impact failed to lift the company’s profitability.
Moreover, the Board of Directors of the company did not announce any cash dividend for the period mentioned above.
Financial Results for the quarter ended December 31, 2019 ('000 Rupees) | |||
|---|---|---|---|
| Dec-19 | Dec-18 | % Change |
Net sales | 4,630,645 | 4,068,609 | 13.81% |
Cost of goods sold | (3,401,286) | (2,728,743) | 24.65% |
Gross profit | 1,229,359 | 1,339,866 | -8.25% |
Distribution and marketing expenses | (486,663) | (444,952) | 9.37% |
Administrative expenses | (144,468) | (128,031) | 12.84% |
Other expenses | (40,364) | (90,492) | -55.39% |
Other income | 9,087 | 2,914 | 211.84% |
operating Profit | 566,951 | 679,305 | -16.54% |
Finance cost | (83,515) | (235,698) | -64.57% |
Profit before taxation | 483,436 | 443,607 | 8.98% |
Taxation – net | (149,994) | (110,933) | 35.21% |
Profit for the year | 333,442 | 332,674 | 0.23% |
Earnings per share – basic and diluted (Rupees) | 9.77 | 9.75 | 0.21% |
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