September 08, 2023 (MLN): National Foods Limited (PSX: NATF) witnessed a remarkable surge in profitability, recording a 41.01% YoY increase for the year ended 30 June 2023.
The company's after-tax profit reached an impressive Rs3.83 billion, translating to an earnings per share (EPS) of Rs13.78. This substantial growth outpaced the previous year's profit of Rs2.72bn, with an EPS of Rs10.4, during the previous year.
This remarkable upturn in profitability can be attributed to a substantial boost in sales, which soared by an impressive 41.29% year-on-year, reaching Rs64.32bn compared to Rs45.53bn in FY22.
Along with the results, the company also announced a final cash dividend for the year ended June 30, 2023, at Rs2.5 per share i.e. 50%.
The cost of sales also rose by 41.73% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 40.17% YoY to Rs18.19bn in FY23.
However, during the review period, other income rose by 41.18% YoY to stand at Rs912.12m in FY23 as compared to Rs646.06m in SPLY.
On the expense side, the company observed a rise in selling and distribution costs by 33.41% YoY while other expenses inched down by 2.09% YoY to clock in at Rs9.91bn and Rs297.78m respectively during the review period.
The company’s finance costs surged by 2.5x YoY and stood at Rs1.16bn as compared to Rs463.81m in FY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs1.17bn against the Rs897.93m paid in the corresponding period of last year, depicting an increase of 30.69% YoY.
| Consolidated (un-audited) Financial Results for the year ended 30 June, 2023 (Rupees in '000) | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 64,322,287 | 45,525,608 | 41.29% |
| Cost of sales | (46,128,408) | (32,546,204) | 41.73% |
| Gross Profit | 18,193,879 | 12,979,404 | 40.17% |
| Selling and distribution cost | (9,913,356) | (7,430,644) | 33.41% |
| Administrative expenses | (2,721,150) | (1,764,506) | 54.22% |
| Impairment loss on trade debts | (10,024) | (47,366) | -78.84% |
| Other Income | 912,120 | 646,056 | 41.18% |
| Other expenses | (297,779) | (304,133) | -2.09% |
| Finance cost | (1,158,889) | (463,809) | 149.86% |
| Profit From Operations | 5,004,801 | 3,615,002 | 38.45% |
| Profit before taxation | 5,004,801 | 3,615,002 | 38.45% |
| Taxation | (1,173,499) | (897,925) | 30.69% |
| Net profit for the period | 3,831,302 | 2,717,077 | 41.01% |
| Basic earnings/ (loss) per share | 13.78 | 10.4 | – |
Amount in thousand except for EPS
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Posted on: 2023-09-08T09:48:40+05:00
