ICI Pakistan reports over twofold profit growth to Rs6bn

January 27, 2022 (MLN): ICI Pakistan reported net profits of Rs 6 billion during 1HFY22, which was 2.4 times higher than the profits of Rs2.46 billion in the corresponding period last year.

This translates into an Earning Per Share (EPS) of Rs62.69, up by 2.2x YoY as compared to the SPLY.

In conjunction with financial results, the Board of Directors has recommended the final cash dividend in respect of the financial year ending June 30, 2022, at the rate of 200% (i.e., Rs20 per share of Rs10 each).

The improved performance was achieved on account of enhanced efficiencies delivered by the businesses, recovering consumer demand, consolidation of results of NutriCo Pakistan (Private) Limited, and a one-off net positive impact of Rs1.847bn resulting from the re-measurement of the previously held equity interest of NutriCo Pakistan (Private) Limited.

Adjusting for the one-off gain of Rs1.847bn due to the remeasurement of previously held equity interest, as explained above, profit after for the period under review would have been Rs4.198bn, 70% higher versus the SPLY and EPS attributable to the owners of the holding company would have been Rs42.69, higher by 49% as compared to the SPLY.

On a consolidated basis, including the results of the company's subsidiaries: ICI Pakistan PowerGen Limited and NutriCo Morinaga (Private) Limited, net turnover for the period under review was Rs46.62bn, up by 53.4% YoY, resulting in an increase in gross margins from 22% to 23%.

According to the financial statement issued to PSX, the operating result stood at Rs6.76bn which was 78.6%YoY higher in comparison to SPLY.

Among other major heads, the company’s distribution cost jumped by 15.7% YoY, admin expenses increased by 32.6% YoY and other income witnessed a growth of 28.4% YoY.

The company booked an effective tax rate of 27% against 32% in the corresponding period last year.

Alongside financial results, the Board of Directors of the company have authorized the execution of a Term Sheet with Tariq Glass Industries Limited (TGIL) to explore the possibility of a joint venture (JV) with TGIL to set up a greenfield state-of-the-art float-glass manufacturing facility, having production capacity of up to 1,000 metric tons per day.

The implementation of the Proposed Joint Venture is subject to, including, finalization and execution of definitive agreements and receipt of necessary corporate and regulatory approval, the company said.

Consolidated Statement of Profit and Loss Account for the six months ended December 31, 2021 (Rs'000)

 

Dec-21

Dec-20

% Change

Turnover

                     46,624,127

                     30,402,987

53.4%

Cost of sales

                  (36,105,494)

                  (23,677,346)

52.5%

Gross profit

                     10,518,633

                       6,725,641

56.4%

Selling and distribution expenses

                     (2,788,213)

                     (2,102,060)

32.6%

Administrative and general expenses

                        (971,018)

                        (839,530)

15.7%

Operating result

                       6,759,402

                       3,784,051

78.6%

Finance costs

                        (487,456)

                        (506,197)

-3.7%

Exchange gain/(loss)

                        (246,348)

                             18,449

 

Workers' profit participation fund

                        (266,458)

                        (195,409)

36.4%

Workers' welfare fund

                        (103,709)

                           (82,628)

25.5%

other charges

                           (39,059)

                           (20,899)

86.9%

Other income

                           177,681

                           138,328

28.4%

Gain on remeasurement of existing interest in NutriCo Pak

                       1,847,321

                                      –  

 

Share of Profit from associate

                                      –  

                           215,033

 

Profit before taxation

                       7,641,374

                       3,350,728

128.1%

Taxation

                     (1,596,356)

                        (888,220)

79.7%

Profit after taxation

                       6,045,018

                       2,462,508

145.5%

EPS

62.69

28.65

118.8%

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Posted on: 2022-01-27T11:27:07+05:00

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