Dawood Hercules reports a 42% growth in earnings during 2020

March 2, 2021 (MLN): Dawood Hercules Corporation Limited has reported earnings of Rs. 42.63 billion for the year ended December 31, 2020, i.e. nearly 42% higher as compared to the earnings of last year.

The Earnings per share for the year stood at Rs. 15.76, which is 34% higher as compared to the EPS of Rs. 11.75 reported last year.

The company saw a 10.27% improvement in net sales and a 10% increase in cost of sales, both of which resulted in a 10.9% growth in gross profit. Further relief was drawn from a 16% increase in other income and a 26.3% decline in non-core expenses.

While the company experienced a loss allowance on subsidy receivable from GoP amounting to Rs. 1.2 billion, this was somewhat compensated for by a 143% increase in share of income from associates.

DAWH also benefitted from a 39.7% decline in income tax expense.

Financial Results for the year ended December 31, 2020 (Rupees '000')

 

Dec-20

Dec-19

% Change

Net sales

248,950,089

225,765,492

10.27%

Cost of sales

(172,869,310)

(157,166,837)

9.99%

Gross profit

76,080,779

68,598,655

10.91%

Selling and distribution expenses

(7,845,069)

(8,103,286)

-3.19%

Administrative expenses

(9,341,513)

(7,671,345)

21.77%

Other income

19,347,249

16,671,711

16.05%

Other operating expenses

(5,447,523)

(7,399,718)

-26.38%

Finance costs

(21,492,621)

(16,175,545)

32.87%

Loss allowance on subsidy receivable from GoP

(1,238,912)

  

Share of income from associates and Joint ventures

2,796,374

1,147,999

143.59%

Profit before taxation

52,858,764

47,068,471

12.30%

Taxation

(10,228,523)

(16,981,645)

-39.77%

Profits for the period

42,630,241

30,086,826

41.69%

Basic and diluted earnings per share

15.76

11.75

34.13%

 

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Posted on: 2021-03-02T10:46:00+05:00

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