August 20, 2020 (MLN): The Board of Directors of ICI Pakistan Limited, in its meeting held on August 20, 2020, has approved the audited financial statements of the company for the year ended June 30, 2020.
According to the company’s financial report, the earnings for the year stood at Rs. 2.36 billion (EPS: 27.37) i.e. around 7% lower than the profits earned in the same period of last year.
The decline in earnings can be attributed to a decline in the net revenue by 7%, along with an increase in the major expense heads such as Selling and Administration by 12.5% and 12.2%, respectively.
The company also saw an increase in its non-core expense by 28%, along with an increase of 27.3% in its finance cost.
During the year, the company recognized Rs. 431 million as a share of profit from NutriCo Pakistan (Pvt.) Limited as compared to Rs. 526 million recognized during last year.
The Board recommended a Final Cash Dividend for the year at Rs. 5 per share i.e. 50%. This is in addition to the interim cash dividend of Rs. 11 per share i.e. 110% already paid. This final cash dividend will bring the total dividend to 160% during the year.
Furthermore, the Board approved the commencement of capacity expansion of Light Soda Ash at its Khewra Plant by 125,000 tons per annum (TPA).
Based on the fundamentals of the Soda Ash business, the growing market needs, and its positive outlook on the Company and the economy, the Board decided to go beyond the earlier announced capacity expansion of 75,000 TPA.
|
Financial Results for the year ended June 30, 2020 (Rupees'000) |
|||
|---|---|---|---|
|
Jun-20 |
Jun-19 |
% Change |
|
|
Net turnover |
55,256,473 |
59,382,411 |
-6.9% |
|
Cost of sales |
(44,339,713) |
(49,637,402) |
-10.7% |
|
Gross Profit |
10,916,760 |
9,745,009 |
12.0% |
|
Selling and distribution expenses |
(3,762,672) |
(3,344,129) |
12.5% |
|
Administration and general expenses |
(1,634,542) |
(1,457,445) |
12.2% |
|
Other charges |
(350,705) |
(273,180) |
28.4% |
|
Finance cost |
(1,891,014) |
(1,485,754) |
27.3% |
|
Exchange loss |
(378,943) |
(437,615) |
-13.4% |
|
Other income |
162,617 |
131,305 |
23.8% |
|
Share of profit from an associate |
431,014 |
525,769 |
-18.0% |
|
Profit before taxation |
3,492,515 |
3,403,960 |
2.6% |
|
Taxation |
(1,130,899) |
(867,330) |
30.4% |
|
Profit after taxation |
2,361,616 |
2,536,630 |
-6.9% |
|
Earnings per share |
27.37 |
27.34 |
0.1% |
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