Packages Limited’s profits (unconsolidated) for the half year ended June 30, 2018 have dropped down by 33.3% as the company reported profits after tax of Rs 2.080 billion compared to Rs 3.120 billion reported a year ago for the half year ended June 2017.
Local Sales surged by about 18%, having been reported at Rs 12.3 billion, compared to Rs 10.4 billion a year ago. Export sales on the other hand, grew by 53% over the year.
Since cost of sales also surged by about 19%, the company’s gross profits rose by only 15%.
On the expenses front, the highest increase in expenses was reported for distribution and marketing expenses, which increased by 20.5% over the year. Both administrative and other operating expenses fell by 3.27% and 30.3% respectively.
Even though the company’s profit from operations increased by 54.39%, the significant drop of investment income from Rs 3.5 billion last year to Rs 2 billion this year caused the firm’s profit before taxation and after tax profits to fall by 32.14% and 33.31% respectively.
The company declared a basic EPS of Rs 22.36 this year, compared to Rs 34.41 last year. Moreover, the company also declared a diluted EPS of Rs 21.98 this year, about 32.6% less than the Rs 32.63 declared a year ago.
| Profit and Loss Account for the Half Year Ended June 30th 2018 ('000 Rupees) | |||
|---|---|---|---|
| Jun-18 | Jun-17 | % Change | |
| Local Sales | 12,304,684 | 10,415,989 | 18.13% |
| Export Sales | 17,409 | 11,376 | 53.03% |
| 12,322,093 | 10,427,365 | 18.17% | |
| Less: Sales tax | 1,893,746 | 1,600,481 | 18.32% |
| Net Sales | 10,428,347 | 8,826,884 | 18.14% |
| Cost of Sales | (8,347,980) | (7,017,868) | 18.95% |
| Gross Profit | 2,080,367 | 1,809,016 | 15.00% |
| Administrative expenses | (526,073) | (543,846) | -3.27% |
| Distribution and marketing costs | (703,764) | (584,099) | 20.49% |
| Other operating expenses | (185,742) | (266,479) | -30.30% |
| Other income | 139,245 | 106,186 | 31.13% |
| Profit from operations | 804,033 | 520,778 | 54.39% |
| Finance costs | (201,184) | (226,462) | -11.16% |
| Investment income | 2,005,431 | 3,549,831 | -43.51% |
| Profit before taxation | 2,608,694 | 3,844,147 | -32.14% |
| Taxation | (527,586) | (724,013) | -27.13% |
| Profit for the period | 2,080,694 | 3,120,134 | -33.31% |
| Basic earnings per share (rupees) | 22.36 | 34.41 | -35.02% |
| Diluted earnings per share (rupees) | 21.98 | 32.63 | -32.64% |
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