March 26, 2021 (MLN): Highnoon Laboratories Limited (HINOON) has announced its financial results for CY20 yesterday wherein the company reported net profits of Rs.1.47 billion which was 47% higher than the profits of Rs.1 billion reported in CY19.
The earning per share of the company also jumped from Rs.28.9/sh to Rs.42.58/sh
Alongside financial results, the company also announced a cash dividend of Rs.15 per share which is 150% for the year 2020.
During the year, the company’s net revenues soared by 18% YoY to Rs 10.7 billion due to growth in volumetric sales.
The cost of sales of the company also increased by 13% YoY, however, the gross margin improved to 49% from 47% in CY19.
With regards to major expense heads, the company’s Distribution, selling, and promotional expenses grew by 11% YoY due to Company’s investment in existing and new brands, launched to sustain the growth momentum, as well as due to extensive and innovative marketing initiatives in the wake of the pandemic. The admin and general expenses witnessed a rise of 20% YoY while research and development expenses inclined by 27% YoY.
Moreover, Other operating expenses also increased by 50% YoY, in line with profit owing to the statutory levies chargeable on profit.
The company observed a 9% YoY decline in financial charges mainly on the back of a promising liquidity position coupled with apt credit management and series of rate cuts during the year.
The effective tax rate of the company came in at 26% in CY20 compared to 27% in CY19.
|
Consolidated Financial Results for the Year ended December 31, 2020 (Rupees) |
|||
|---|---|---|---|
|
|
Dec-20 |
Dec-19 |
% change |
|
Revenue from contracts with customers |
10,697,633,870 |
9,047,692,893 |
18% |
|
Cost of revenue |
(5,455,347,788) |
(4,815,219,189) |
13% |
|
Gross profit |
5,242,286,082 |
4,232,473,704 |
24% |
|
Distribution, selling and promotional expenses |
(2,645,473,995) |
(2,386,788,950) |
11% |
|
Admin and general expenses |
(476,648,232) |
(396,215,600) |
20% |
|
Research and development expenses |
(6,377,871) |
(5,012,518) |
27% |
|
Other operating expenses |
(185,286,277) |
(123,621,231) |
50% |
|
Profit from Operations |
1,928,499,707 |
1,320,835,405 |
46% |
|
Other income |
102,137,529 |
83,030,953 |
23% |
|
Finance Cost |
(31,748,609) |
(35,043,496) |
-9% |
|
Profit before taxation |
1,998,888,627 |
1,368,822,862 |
46% |
|
Taxation |
(525,071,303) |
(368,218,960) |
43% |
|
Profit after taxation |
1,473,817,324 |
1,000,603,902 |
47% |
|
Earnings per share-basic and diluted |
42.58 |
28.91 |
47% |
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