Feroze1888 Mills’ profits decline by 51% during FY20 owing to higher expenses

September 14, 2020 (MLN): Feroze1888 Mills Limited has earned a profit of Rs. 2.94 billion (EPS: 7.8) during the year ended June 30, 2020, i.e. almost 51% lower than the amount earned in the previous year.

The Board of Directors of the company also recommended a final cash dividend for the year at Rs. 0.59 per share i.e. 5.9%. This is in addition to interim dividend already paid at Rs. 1.75 per share i.e. 17.5%.

According to the company’s financial results, the revenue grew by 6.3%, whereas the cost of sales increased by 9.7%, causing the gross profit to decline by 3.1%.

The company also experienced a 12.3% and 11.1% rise in its distribution and administrative expenses, respectively. Other setbacks came in the form of an 87.2% increase in other expenses and 89.3% decline in non-core income.

On top of that, the company suffered a 1.22x increase in its finance cost and around 50% increase in income tax expense, thus, leading to such a substantial decrease in yearly profits.

Financial Results for the year ended June 30, 2020 (Rupees’000)

 

Jun-20

Jun-19

% Change

Sales

             31,205,677

           29,348,438

6.3%

Cost of sales

           (23,698,998)

         (21,600,408)

9.7%

Gross profit

               7,506,679

              7,748,030

-3.1%

Distribution expense

             (2,276,372)

           (2,026,890)

12.3%

Administrative expenses

             (1,150,779)

           (1,035,928)

11.1%

Other expenses

                 (667,832)

               (356,736)

87.2%

Other income

                   218,888

              2,048,510

-89.3%

Finance cost

                 (346,959)

               (155,892)

122.6%

Profit before taxation

               3,283,625

              6,221,094

-47.2%

Taxation

                 (346,404)

               (231,284)

49.8%

Profit after taxation

               2,937,221

              5,989,810

-51.0%

Earnings per share

7.8

15.9

-50.9%

 

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Posted on: 2020-09-14T15:07:00+05:00

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