High operating costs cut down BATA profits by 12%

October 30, 2018 (MLN): Bata Pakistan Limited (BATA) has announced profits of Rs. 792 million for the nine months ended 30th September 2018, 12.39% down as compared to the corresponding period last year. The downturn was a result of boosted operating expenses coupled with falling non-core income.

According to the notification issued to PSX, the top-line earnings of the company showed a slight improvement of 6.37%, as well as the cost of sales that grew by merely 5.27%, causing the Gross Profits to increase by 7.89%

However, it was the growth in Distribution cost (13.58%), Administrative cost (10.64%), other expenses (8.8%) along with a fall in non-core income (42.2%) that led to a smothered financial stability.

Furthermore, the increase in Finance cost by 12.51% also contributed in the company’s sliding profits.

The Earnings per share were stated at Rs. 104.79 for the nine months ended 30th September 2018.

The company announced a Cash dividend of 900 (Rs. 90/- per share)

Profit and loss account for the nine months ended September 30th 2018 (Rupees’000)

 

Sep-18

Sep-17

% Change

SALES

11,764,772

11,059,871

6.37%

COST OF SALES

6,734,640

6,397,509

5.27%

GROSS PROFIT

5,030,132

4,662,362

7.89%

Distribution cost

2,854,490

2,513,177

13.58%

Administrative expenses

803,156

725,950

10.64%

Other expenses

120,169

110,447

8.80%

OTHER INCOME

34,140

59,064

-42.20%

FINANCE COST

34,899

31,018

12.51%

PROFIT BEFORE TAXATION

1,251,558

1,340,834

-6.66%

PROVISION FOR TAXATION

 

 

 

Current

450,422

458,350

-1.73%

Deferred

8,913

-21,747

 

PROFIT AFTER TAXATION

792,223

904,231

-12.39%

EARNINGS PER SHARE- BASIC AND DILUTED

104.79

119.61

-12.39%

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Posted on: 2018-10-30T10:49:00+05:00

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