Avanceon’s profits soar fourfold in 2023, hitting Rs4.5bn

April 08, 2024 (MLN): Avanceon Limited (PSX: AVN) experienced a significant fourfold increase in profitability in 2023, with its profit after tax reaching Rs4.48 billion [EPS: Rs12.15], compared to a profit of Rs1.12bn [EPS: Rs2.75] in the previous year.

Along with the results, the company announced a final dividend at Rs2 per share, along with bonus shares to be issued in the proportion of 10 shares for every 100 shares held i.e. 10%.

Going by the consolidated results, the company's top line marked an increase of 86.3% YoY to Rs17.77bn as compared to Rs9.54bn in SPLY.

The cost of sales also rose by 72.8% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 2.24x YoY to Rs5.61bn in 2023.

The gross margins improved to 31.60% as compared to 26.28% a year earlier.

Moreover, during the review year, other income rose by 5.94x YoY to Rs4.89bn as compared to Rs823.14m in 2022.

On the expense side, the company observed an increase in administrative and selling expenses by 2.51x YoY while other expenses fell by 24.2% YoY to clock in at Rs4.58bn and Rs6.73m respectively during the review period.

The company’s finance cost expanded by 89.2% YoY and stood at Rs422m as compared to Rs223.05m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs1.11bn against the Rs154.67m paid in the corresponding period of last year, depicting a rise of 7.18x YoY.

Amount in thousand except for EPS

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