ICI withstands 33% decline in profits as overall costs increase

October 25, 2018 (MLN): ICI Pakistan Limited’s (ICI) profits for the quarter ended 30^th September 2018 have dropped by 33.88%, due to combined effect of increase in Cost of sales, Operating expenses and Finance costs.  

According to the notification issued to PSX, the top-line earnings for the company increased by 16.76%, whose impact was almost immediately annulled by an almost equal absolute increase in Cost of sales, leading to the gross profits of the company increasing by merely 7.58%.

The Selling & Distribution expenses and Administration & General expenses of the company reported an increase of 14.67% and 22.53% respectively, as compared to the corresponding period last year.

Similarly, the increase in Finance costs by a massive 190.08% i.e. Rs. 209 million struck the wrong chords of the financial position of the company.

Contrary to this, the taxes of the company fell considerably by 86.79% i.e. Rs. 1.5 billion, curbing some of the damage caused by other factors.

The Earnings per share of the company were stated at Rs. 5.83 for the quarter ended 30^th September 2018, 34.42% down from the previous year.

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