Higher operating expenses decline EFOODS earnings by 72%

April 26, 2019 (MLN):  Engro Foods Limited (EFOODS) has announced its financial results for the quarter ended on March 31st 2019, as per which the company posted a massive decline in its net profits after tax by 72% to Rs 83.4 million with EPS at Rs 0.11 compared to Rs 301.3 million (EPS: 0.39) posted in the same quarter last year.

During the quarter, the company observed 21.5% uptick in net sales which helped limit the impact of around 27% rise in cost of sales.

On the other hand, rise in distribution expenses, administrative expenses and finance cost by 12.5%, 56% and 75.5% respectively, put a dent on the profitability of the company.

Furthermore, the company enjoyed 80% of reduction in tax payments YoY,  but the impact failed to elevate the company's net profits.

 

Profit and Loss Account for the Quarter Ended March 31st, 2019 (Rupees '000)

 

Mar-19

Mar-18

% Change

Net Sales

                       8,682,771

                       7,144,026

21.54%

Cost of Sales

                     (7,127,409)

                     (5,625,988)

26.69%

Gross Profit

                       1,555,362

                       1,518,038

2.46%

Distribution and Marketing Expenses

                        (986,884)

                        (876,840)

12.55%

Administrative Expenses

                        (299,694)

                        (191,445)

56.54%

Other Operating Expenses

                           (18,256)

                           (38,371)

-52.42%

Other Income

                             85,013

                           120,308

-29.34%

Operating Profit

                           335,541

                           531,690

-36.89%

Finance Cost

                        (232,601)

                        (132,468)

75.59%

Loss/Profit before Taxation

                           102,940

                           399,222

-74.21%

Taxation

                           (19,488)

                           (97,900)

 

Profit/ (loss) for the Period

                             83,452

                           301,322

-72.30%

Earnings per Share – Basic and Diluted (Rs)

                                  0.11

                                  0.39

-71.79%

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Posted on: 2019-04-26T13:47:00+05:00

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