Earning Review: Philip Morris Pakistan incurs losses due to closure of its Kotri factory

August 22, 2019 (MLN): Philip Morris Pakistan Limited (PMPK) has observed losses of Rs.591.5 million for the half year ended June 30, 2019, as compared to profits of Rs. 724 million (EPS: Rs 4.62) earned in the same period last year.

The losses were incurred mainly due to the management decision to reorganize its operational footprint by closing its factory in Kotri.

Moreover, during the period under review, the company observed a massive growth in its other expenses from Rs 251 million to Rs 2.6 billion after which the company found itself to face with pre-tax losses of Rs 549.8 million.

However, the company enjoyed a tax reversal worth Rs.234.6 million which was not enough to keep the company’s earnings from going into the negative zone.

The company reported its Loss per share (LPS) at Rs 9.69 for the period mentioned above.

Financial Results for the half year ended June 30, 2019 ('000 Rupees)

 

 

Jun-19

Jun-18

% Change

Turnover – net

 9,519,537

 7,654,337

24.37%

Cost of sales

 5,778,394

 4,163,808

38.78%

Gross profit

 3,741,143

 3,490,529

7.18%

Distribution and marketing expenses

 1,236,783

 1,682,379

-26.49%

Administrative expenses

 683,209

 658,600

3.74%

Other expenses

 2,598,673

 251,254

934.28%

Other income

 260,263

 111,521

133.38%

Operating profit

 (517,259)

 1,009,817

 

Finance cost and bank charges

 32,582

 9,299

250.38%

Profit before taxation

 (549,841)

 1,000,518

 

Taxation

 41,752

 276,378

-84.89%

Profit after taxation

 (591,593)

 724,140

 

Earnings per share – basic and diluted (Rupees)

 (9.69)

 4.62

 

 

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Posted on: 2019-08-22T16:04:00+05:00

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