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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