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FCEPL witnesses a turnaround in profitability

April 20, 2021 (MLN): FrieslandCampina Engro Pakistan Limited (FCEPL) today, announced financial results for the first quarter ended March 31, 2021 as per which the company witnessed a turnaround in profitability.

The net profits of the company clocked in at Rs546.7 million in the 1QCY21 against the net loss of Rs131 million in the same period last year. This has translated into earnings per share which increased to Rs0.71 per share from Rs0.17 in the corresponding period last year.

During the period, this turnaround in profits seen in the financial results below is a result of higher revenue from contracts with customers, up by 18.7% YoY, despite an 11.5% YoY increase in the cost of revenue, expanding gross margins from 15% to 20%.

On the cost front, distribution and marketing expenses stood at Rs1.03 billion, showing an increase of 2.72% YoY while a meager decline of 4.8% YoY has been observed in administrative expenses.

Meanwhile, the company succeeded to reduce its other operating expenses by 8.5x compared to the same quarter of the last year which also contributed to the financial performance of the company.

Furthermore, a 2.5x YoY increase in other income and a significant drop in finance cost by 53% YoY amid a lower interest regime lifted the bottom-line.

As per the financial statement, the company paid income tax of Rs239.28 million as opposed to the tax incentive of Rs51.72 million that the company availed in the same quarter last year.

Profit and Loss Account for the First Quarter ended March 31, 2021 ('000 Rupees)

 

Mar-21

Mar-20

% Change

Revenue from contracts with customers-net

11,577,487

9,805,871

18.07%

Cost of revenue

 (9,279,102)

 (8,325,423)

11.46%

Gross Profit

 2,298,385

 1,480,448

55.25%

Distribution and Marketing Expenses

 (1,027,425)

 (1,000,184)

2.72%

Administrative Expenses

 (288,040)

 (302,685)

-4.84%

Other Operating Expenses

 (92,597)

 (10,781)

758.89%

Other Income

 73,317

29,730

146.61%

Operating Profit

 963,640

 196,528

390.33%

Finance Cost

 (177,561)

 (378,885)

-53.14%

Profit/ (Loss) before Taxation

 786,079

 (182,357)

Taxation

 (239,281)

51,728

Profit/ (Loss) for the period

 546,798

 (130,629)

Earnings per Share – Basic and Diluted (Rs)

 0.71

 0.17

 

Copyright Mettis Link News

Posted on: 2021-04-20T20:56:00+05:00

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