February 24, 2022 (MLN): National Foods Limited (PSX: NATF) has recorded a consolidated net profit of Rs1.31 billion (EPS: Rs5.03) during 1HFY22, showing an upsurge of 39% YoY in contrast to net profits of Rs944mn (EPS: 3.52), mainly on the back of consistent growth trajectory on the topline.
Going by the financial statement of the company sent to PSX, the net sales jumped by 26.5% YoY to Rs20.3bn as the company accelerates the business by optimizing revenue, cost transformation and driving volume initiatives across all regions through brand and consumer-led activities. As a result, the gross margins of the company inched up by 0.08ppt to 28.45% in the said period.
On the cost front, NATF’s major expense head i.e., distribution cost swelled by 30% YoY to Rs3.16bn while administrative expenses surged by 17.5% YoY.
Notably, the non-operating income of the company massively increased by 6.7 times YoY to Rs207mn that somehow supported the bottom-line growth.
Meanwhile, the finance costs of the company climbed by 17.5% YoY to Rs187mn in 1HFY22 as the central bank increased interest rates in the second quarter of the ongoing fiscal year on the back of growing inflation.
On the tax front, the effective tax rate stood at 24% in 1HFY22 as opposed to 23% in SPLY.
|
Consolidated Financial Results for the six months ended December 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Sales |
20,334,099 |
16,070,773 |
26.53% |
|
Cost of sales |
(14,548,676) |
(11,510,870) |
26.39% |
|
Gross profit |
5,785,423 |
4,559,903 |
26.88% |
|
Distribution costs |
(3,159,608) |
(2,436,638) |
29.67% |
|
Administrative expenses |
(847,840) |
(721,542) |
17.50% |
|
Other expenses |
(81,786) |
(48,819) |
67.53% |
|
Other income |
207,623 |
30,970 |
570.40% |
|
Operating profit |
1,903,812 |
1,383,874 |
37.57% |
|
Finance costs |
(187,419) |
(159,573) |
17.45% |
|
Profit before taxation |
1,716,393 |
1,224,301 |
40.19% |
|
Taxation – net |
(406,302) |
(280,293) |
44.96% |
|
Profit after tax |
1,310,091 |
944,008 |
38.78% |
|
Basic and diluted earnings per share – Rupees |
5.03 |
3.52 |
42.90% |
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