MFL: Bottom line turns red

September 10, 2021 (MLN): Matco Foods Limited (MFL) has incurred losses of Rs53 million (LPS: 0.43) for the year ended June 30, 2021, against the consolidated profits of Rs139.4mn (EPS: 1.14) recorded in the previous year.

Going by the financial statement sent to PSX, the revenue of the company saw a dip of 6.4% to stand at Rs10.57billion, compared to Rs11.3bn in FY20. The decline in the revenue is mainly owing to the decrease in volumetric sales, lower international prices and higher input costs. Resultantly, the gross margin of the company has plunged to 6.1% as compared to 9.0% in FY20.

On the expense side, the company witnessed 14.3% increase in its administrative expenses to Rs312mn whereas, the selling and distribution expenses have come down by almost the same percentage to clock in at Rs187.32mn in FY21.

The company got some relief as the finance cost of the company came down to Rs273.18mn in FY21, dropped by 22%, amid lower tax regime.

In addition, the company observed a remarkable exchange gain during the year to Rs65.21mn, compared to Rs14mn in FY20. Meanwhile, the other income of the company also surged by 36.31% to stand at Rs77mn, compared to the same period last year.

On the tax front, the company paid Rs80.42mn during FY21 in terms of income tax, against Rs86.58mn paid in FY20.

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