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Matco Foods observes a massive decline in net earnings by 59% YoY in 1HFY20

February 6, 2020 (MLN): Matco Foods Limited (MFL) has announced its financial results for the half-year ended on December 31, 2020. As per results, the company witnessed a massive decline in its consolidated net profits by around 59% YoY to 63 million against last year’s net profits of Rs 153 million.

During the period, the cost of sales increased by 3% YoY but a greater percentage increase in sales revenue (up nearly by 6% YoY) caused gross profits to increase by around 23% YoY to Rs 504 million, resulting in an increase in gross margin from 11% to 13%.

More notably, it bore 83.98%  finance cost from Rs. 119 million to Rs. 153 million when compared to the prior year owing to the higher interest rate. Moreover, operating expenses increased by 27.37% YoY.

The company incurred exchange losses which stood at Rs 13 million during 1HFY20 against the gain of Rs 63.38 million of the same period last year. Also, other income slumped by 36% YoY.

Other than this, MFL’s basic and diluted earnings per share have been reported at Rs.0.52 per share while those recorded last year were Rs.1.25 per share.

Financial Results for the half-year ended December 31, 2019 (‘000 Rupees)

31-Dec-19

31-Dec-18

% change

Sales – net

3,794,146

3,585,782

5.81%

Cost of sales

-3,289,666

-3,175,382

3.60%

Gross profit

504,480

410,400

22.92%

Operating expenses

Selling and distribution

-105,625

-72,437

45.82%

Administrative

-143,188

-122,915

16.49%

-248,813

-195,352

27.37%

Operating profit

255,667

215,048

18.89%

Financial charges

-153,736

-119,859

28.26%

Share of loss from an associated company

-5,404

Exchange (loss)/gain

-13,064

63,388

83,463

158,577

-47.37%

Other operating income

16,687

26,068

-35.99%

Profit before income tax

100,150

184,645

-45.76%

Taxation

-37,034

-31,240

18.55%

Profit for the period

63,116

153,405

-58.86%

Earnings per share – Basic and Diluted

0.52

1.25

-99.58%

Copyright Mettis Link News

Posted on: 2020-02-06T14:59:00+05:00

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