April 5, 2019 (MLN): Pak Elektron Limited (PAEL) has reported net earnings of Rs. 1.3 billion for the year ended December 31, 2018, i.e. around half of the profits earned last year. The significant decline in profit margins was a result of lower gross margins due lesser sales, as well as higher financial charges.
The period under review proved to be extremely challenging for the company due to intense competition it faced coupled with lower purchases by consumers.
Moreover, the results announced by the company are in line with the market expectations.
The company’s Earnings per share stood at Rs. 2.67 as compared to last year’s EPS of Rs. 6.56.
|
Financial Results for the year ended December 31, 2018 (Rupees'000) |
|||
|---|---|---|---|
|
2018 |
2017 |
% change |
|
|
Revenue |
38,990,247 |
42,346,753 |
-7.93% |
|
Sales Tax, Excise Duty and Discounts |
(10,544,936) |
(11,346,711) |
-7.07% |
|
Net Revenue |
28,445,311 |
31,000,042 |
-8.24% |
|
Cost of Sales |
(21,448,040) |
(21,883,842) |
-1.99% |
|
Gross Profit |
6,997,271 |
9,116,200 |
-23.24% |
|
Other Income |
17,977 |
17,793 |
1.03% |
|
Distribution Cost |
(2,207,445) |
(2,683,532) |
-17.74% |
|
Administrative and general expenses |
-1,081,326 |
(1,118,844) |
-3.35% |
|
Other expenses |
(63,376) |
(176,194) |
-64.03% |
|
Operating Profit |
3,663,101 |
5,155,423 |
-28.95% |
|
Finance Cost |
(2,103,343) |
(1,546,604) |
36.00% |
|
Share of Loss of Associate |
(2,456) |
(5,354) |
-54.13% |
|
Profit before taxation |
1,557,302 |
3,603,465 |
-56.78% |
|
Taxation |
(185,833) |
(295,211) |
-37.05% |
|
Profit after Taxation |
1,371,469 |
3,308,254 |
-58.54% |
|
Earnings per share-basic and diluted |
2.67 |
6.56 |
-59.30% |
Copyright Mettis Link News
27242
