February 4, 2020 (MLN): Engro Polymer and Chemical Limited has declared earnings of Rs. 3.69 billion for the year ended December 31, 2019, i.e. nearly 25.03% lower than last year. The Earnings per share of the company stood at Rs. 4.07, which is 34.57% lower than the EPS of previous year.
The company also announced a Final Cash Dividend for the year at Rs. 0.2 per share, i.e. 2%. This is in addition to interim Cash Dividend already paid at Rs. 0.6 per share i.e. 6%.
According to the financial report sent to the Pakistan Stock Exchange, the topline-income and cost of sales of the company grew by the same margin. This, however, resulted in a 6.5% increase in gross profits.
Other major highlights from the report included a 50% increase non-core expenses, and a 1.96x surge in finance costs. These adverse movements led to the PBIT decreasing by almost 22%.
Earlier in January, the Board of Directors of the company had resolved to issue Preference Shares to individuals, companies, body corporates, commercial banks, DFIs, financial institutions, mutual funds, provident / pension / gratuity funds / trusts, etc., by way of pre-IPO placements and public offering, at a price of Rs. 10 each, aggregating up to Rs. 3 billion.
The proceeds of the Preference Shares, according to the Board, shall be primarily utilized to expand the Company’s Poly-Vinyl-Chloride capacity and debottlenecking of Vinyl Chloride Monomer production capacity without increasing leverage, with the intention of obtaining tax credits under the applicable laws.
Consolidated Profit and Loss Account for the year ended December 31, 2019 ('000 Rupees) | |||
|---|---|---|---|
2019 | 2018 | % Change | |
Net revenue | 37,836,632 | 35,271,635 | 7.27% |
Cost of sales | (29,730,617) | (27,663,022) | 7.47% |
Gross profit | 8,106,015 | 7,608,613 | 6.54% |
Distribution and marketing expenses | (391,624) | (384,790) | 1.78% |
Administrative expenses | (570,363) | (576,527) | -1.07% |
Other operating expenses | (1,241,226) | (827,830) | 49.94% |
Other income | 930,269 | 1,249,393 | -25.54% |
Operating profit | 6,833,071 | 7,068,859 | -3.34% |
Finance cost | (1,793,775) | (605,556) | 196.22% |
Profit before taxation | 5,039,296 | 6,463,303 | -22.03% |
Taxation | (1,343,259) | (1,533,132) | -12.38% |
Profit for the period | 3,696,037 | 4,930,171 | -25.03% |
Earnings per share – basic and diluted (Rupees) | 4.07 | 6.22 | -34.57% |
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