Kohat Cement suffers 16% decline in annual profits

MG News | September 19, 2018 at 02:07 PM GMT+05:00

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September 19, 2018 (MLN): Kohat Cement’s annual profits for the year ended June 30^th 2018 deteriorated by almost 16%, on account of lower top-line earnings and comparatively higher cost of products.

The company’s Board of Directors meeting took place earlier today, where the board reviewed the company’s financial earnings for the year and laid it side by side with the prior year’s earnings.

According to the report issued to PSX, during the year, Kohat Cement’s net sales registered a drop of 0.75% while the cost of products sold shot up by almost 18%, resulting in gross profits to fall by a quarter.

Meanwhile, administrative and general expenses, and finance costs of the company soared by 25% resulting in a 27% drop in pre-tax profits.

Fortunately for the company, tax provisions during the year remained comparatively merciful as they came down by around 48%, YoY, letting the overall profits for the year to drop by a smaller margin of 16%.

The company’s earnings per share dropped by 15.9% as well, dropping from Rs.22.94 per share to Rs.19.29 per share, YoY.

Apart from this, the board also recommended a final cash dividend at Rs.5 per share, i.e. 50%.

It further recommended to issue bonus shares in the proportion of 30 share(s) for every 100 share(s) held, i.e. 30%.

Profit and Loss Account for the Year Ended June 30th 2018 (Rupees)
	Jun-18	Jun-17	% Change
Sales - net	13,438,843,026	13,540,304,600	-0.75%
Cost of goods sold	(9,085,616,172)	(7,712,936,683)	17.80%
Gross profit	4,353,226,854	5,827,367,917	-25.30%
Selling and distribution expenses	(124,744,932)	(129,666,117)	-3.80%
Administrative and general expenses	(203,149,588)	(163,009,229)	24.62%
Other operating income	361,696,624	393,104,388	-7.99%
Other operating expenses	(310,145,721)	(407,910,842)	-23.97%
	(276,343,617)	(307,481,800)	-10.13%
Operating profit	4,076,883,237	5,519,886,117	-26.14%
Finance cost	(106,531,176)	(84,961,726)	25.39%
Profit before taxation	3,970,352,061	5,434,924,391	-26.95%
Taxation	(990,357,268)	(1,890,109,541)	-47.60%
Profit after taxation	2,979,994,793	3,544,814,850	-15.93%
Earnings per share - basic and diluted (Rupees)	19.29	22.94	-15.91%

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