February 9, 2021 (MLN): FrieslandCampina Engro Pakistan Limited (FCEPL) has witnessed a turnaround in net profits to Rs 176 million (EPS: Rs 0.23) for the year ended on December 31st, 2020 compared to the net losses of Rs 954 million (LPS: Rs 1.25) incurred in last year.
The turnaround in earnings can be attributed to higher volumetric sales and a decline in major expense heads.
During the year, the company registered a 14.5% YoY increase in revenues while its cost of sales jumped by 13.40 % YoY, as a result, the gross profits of the company saw a growth of 22% YoY.
The company’s earnings were further strengthened by a decrease in expense heads, as administrative cost came down by 7.35% YoY from Rs 1.24 billion to Rs 1.15 billion. Moreover, distribution & marketing expenses and other operating charges fell by 0.48% and 28.21%, YoY, respectively.
As per the financial statement issued by the company, the other positive highlights include a 32% YoY increase in other income. However, the company reported finance cost which increased marginally by 1.41% YoY to clock in at Rs 1.24 billion.
Profit and Loss Account for the year ended December 31, 2020 ('000 Rupees) |
|||
---|---|---|---|
|
Dec-20 |
Dec-19 |
% Change |
Revenue from contracts with customers-net |
44,155,023 |
38,567,019 |
14.49% |
Cost of revenue |
(38,202,175) |
(33,687,049) |
13.40% |
Gross Profit |
5,952,848 |
4,879,970 |
21.99% |
Distribution and Marketing Expenses |
(3,661,213) |
(3,678,992) |
-0.48% |
Administrative Expenses |
(1,154,310) |
(1,245,853) |
-7.35% |
Other Operating Expenses |
(177,243) |
(246,874) |
-28.21% |
Other Income |
546,438 |
412,968 |
32.32% |
Operating Profit |
1,506,520 |
121,219 |
1142.81% |
Finance Cost |
(1,238,840) |
(1,221,574) |
1.41% |
Profit/ (Loss) before Taxation |
267,680 |
(1,100,355) |
– |
Taxation |
(90,754) |
145,490 |
-162.38% |
Profit/ (Loss) for the year |
176,926 |
(954,865) |
– |
Earnings/ (Loss) per Share – Basic and Diluted (Rs) |
0.23 |
(1.25) |
– |
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