Cherat Packaging's profit surges 70% YoY in 2QFY24, declares 10% dividend

February 15, 2024 (MLN): Cherat Packaging Limited (PSX: CPPL) reported a substantial 69.58% YoY increase in profitability during the second quarter of fiscal year 2024, with the company's profit after tax surging to Rs71.99 million [EPS: Rs1.47], compared to a profit of Rs42.45m [EPS: Rs0.86] in the same period last year (SPLY).

Along with the impressive results, the company declared an interim cash dividend of Rs1 per share, i.e. 10%.

Going by the results, the company's top line fell by 10.10% YoY to Rs3.63bn as compared to Rs4.04bn in SPLY.

However, the cost of sales also fell by 11.41% YoY, improving the gross profit slightly by 0.50% YoY to Rs447.98m in 2QFY24.

The gross margins inched up to 12.33% as compared to 11.03% in SPLY.

During the period under review, other income decreased by 6.05% YoY to stand at Rs33.28m in 2QFY24 as compared to Rs35.42m in SPLY.

On the expense side, the company observed a decrease in distribution costs by 4.21% YoY and administrative expenses by 15.88% YoY to clock in at Rs64.76m and Rs45.58m respectively during the review period.

The company’s finance costs also dipped by 19.49% YoY and stood at Rs252.24m as compared to Rs313.29m in SPLY.

On the tax front, the company paid a significantly higher tax worth Rs41.35m against the Rs1.06m paid in the corresponding period of last year.

Amount in thousand except for EPS

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