Gul Ahmed incurs losses of Rs 625 million during FY20

September 28, 2020 (MLN): Gul Ahmed Textile Mills has reported losses of Rs. 625.7 million (LPS: 1.46) for the Financial Year 2020, as opposed to the earnings of Rs. 3.6 billion recorded last year.

The decline in profitability was a clear outcome of lower sales, which fell by 5.5% during the year. This led to gross profits decreasing by 24%.

Where no substantial changes were observed in the major expense heads, the other operating expense showed a decline of 15.3%. On the other hand, the non-core income plummeted by 68.5%, further straining the financial position of the company.

There was also a 36.7% increase in the finance cost owing to higher interest rates and short-term borrowings by the company.

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

 

Jun-20

Jun-19

% Change

Sales – net

55,932,658

59,189,652

-5.5%

Cost of sales

(46,262,397)

(46,431,611)

-0.4%

Gross Profit

9,670,261

12,758,041

-24.2%

Distribution cost

(4,680,482)

(4,889,571)

-4.3%

Administrative expenses

(3,261,931)

(3,191,519)

2.2%

Other operating cost

(264,192)

(311,783)

-15.3%

Other income

367,679

1,167,995

-68.5%

Finance cost

(2,054,273)

(1,502,649)

36.7%

(Loss)/profit before taxation

(222,938)

4,030,514

 

Taxation

(402,824)

(400,282)

0.6%

(Loss)/profit after taxation

(625,762)

3,630,232

 

(Loss)/earnings per share

-1.46

8.49

 

 

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Posted on: 2020-09-28T12:01:00+05:00

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