Bannu Woolen Mills’ Annual profit weighed down by rising losses of associated companies

September 28, 2018 (MLN): Overall after-tax profit of Bannu Woolen Mills Limited fell by 24.25% for the year ended June 30, 2018, as the profits fell from Rs. 67 million to Rs. 51 million on a year-on-year basis.

The company's Board of Directors meeting was held yesterday and the board reviewed the financial benefits for the year.

As per the report, the company's total annual sale reached Rs 838 million, an increase of 5.71% on a year-on-year basis, resulting in an increase in gross profit of 4.13% which is counted to be Rs. 272 million.

Although the company experienced a 41.53% decline in administrative cost and 60.46% increment in distribution cost on a year-on-year basis, yet the operating process increased by 23%.

However, a 327.8% increment in finance cost and a 589.2% increment in share of loss of associated companies led to a decline in before-tax profit.

Moreover, the company also experienced an increase in tax provisions of 12. 56%, which resulted in a further drop in company’s profit.

The company’s basic and diluted earnings per share suffered a decline of 24.16% as they fell from Rs 7.12 per share to Rs 5.40 per share on a year-on- year basis.

The board has further recommended a final Cash Dividend of 25% i.e. Rs. 2.50 per share.

 

Financial results for the year ended June 30, 2018 ('000 Rupess)

 

Jun-18

Jun-17

%  change

Sales

                       838,619

                        793,305

5.71%

Cost of Sales

                       565,785

                        531,292

6.49%

Gross Profit

                       272,834

                        262,013

4.13%

Distribution Cost

                         79,795

                          49,730

60.46%

Administrative Expenses

                         60,735

                        103,879

-41.53%

Other Expenses

                         10,993

                             9,494

15.79%

Other Income

                         (4,116)

                          (3,086)

33.38%

 

                       147,407

                        160,017

-7.88%

Profit from Operations

                       125,427

                        101,996

22.97%

Finance Cost

                         17,552

                             4,103

327.78%

 

                       107,875

                          97,893

10.20%

Share of (Loss)/ Profit of  Associated Companies – net

                       (27,030)

                          (3,922)

589.19%

Profit before Taxation

                         80,845

                          93,971

-13.97%

Taxation

                         29,542

                          26,246

12.56%

Profit after Taxation

                         51,303

                          67,725

-24.25%

Earnings per Share (Rupee)

                              5.40

                               7.12

-24.16%

 

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Posted on: 2018-09-28T13:09:00+05:00

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