Despite suffering losses Kohinoor Textile Mills announces cash dividend of Re.1 per share

September 14, 2020 (MLN): Kohinoor Textile Mills (KTML) has reported net losses of Rs 2.595 billion in FY20 against the net profits of Rs 4.376 billion in FY19.

The loss per share of the company clocked in at Rs 3.32 while in previous year, the company declared   earnings per share of Rs 10.45.

During the year, Company’s sales increased by 7.9% YoY to Rs 50.8 billion (2019: Rs 47 billion), while cost of sales increased by 23% YoY to Rs 45.97 billion (2019: Rs 37 billion). This resulted in gross profit of Rs 4.87 billion, marking a decline of 50.9% YoY.

Operating profit during FY20 stood at Rs 1 billion compared to Rs 6.84 billion in FY19, as the company witnessed 79% YoY rise in its Other expenses and 9.7% and 8.8% growth in Distribution and Admin cost respectively which suffered company’s profits from operations by 85% YoY.

Company’s profitability further injured due to higher Financial charges which amplified by 120% YoY.

Despite experiencing losses, the Board of Directors of KTML announced a final cash dividend of Re 1 per share i.e. 10%. This is in addition to the interim dividend already paid at Re. 1 per share i.e. 10%.

The Board in its Annual General Meeting also approved  investments  of upto Rs 1.5 bln to Maple Leaf Cement Factory and Rs 500 mln to Maple Leaf Capital Limited.

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