Berger Paints declares Rs4 dividend, posts Rs262.9m profit in FY24

September 25, 2024 (MLN): Berger Paints Pakistan Limited (PSX: BERG) recorded an increase of 9.5% YoY in its earnings for FY24, clocking in its profit after tax at Rs262.86 million [EPS: Rs10.71], compared to the bottom line of Rs240.06m [EPS: Rs9.78] reported in FY23.

Along with the results, the company announced a final cash dividend of R4 per ordinary share for the year ended June 30, 2024.

Going by the results, BERG's top line went up by 16.4% to Rs8.54bn as compared to Rs7.34bn in FY23.

The cost of sales also rose by 16.5% but the growth in sales outpaced costs which improved the gross profit by 16.1% to Rs1.72bn in FY24.

On the expense side, the company's administrative expenses rose 10.6% YoY to Rs231.15m, while distribution costs surged by 23.2% YoY to Rs717.44m.

On the other hand, other operating expenses fell 52.2% YoY to Rs48.47m.

Berger Paints also reported an impairment loss charge of Rs67.99m in FY24, down by 6.97% compared to the previous fiscal year.

During the period under review, other income shrank 28.6% to stand at Rs69.71m in FY24 as compared to Rs97.69m in SPLY.

The company’s finance cost expanded by 7.4% and stood at Rs304.6m as compared to Rs283.55m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs158.49m against the Rs91.14m paid in the corresponding period of last year, depicting a rise of 73.9%.

To sum up, BERG's growth in revenue was significant enough to cover its operational expenses, finance costs and drop in other income, which resulted in the company posting a higher profit.

Amount in thousand except for EPS

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