ARPL’s quarterly profits remain flat

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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Posted on: 2020-01-29T14:53:00+05:00

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