National Foods Ltd’s net profits jump by 20% YoY in FY20

September 8, 2020 (MLN): National Foods Limited has reported a 20.43% YoY increase in net profits to Rs 1.65 billion for FY20. Whereas, in the corresponding period last year, the company’s net profits stood at Rs 1.37 billion.

This translated into company’s earnings per share which rose by 13.7% YoY from Rs 8.68 to Rs 9.87.

During the year, Net sales of the company posted a healthy growth of 18.39% YoY, mainly due to brand and consumer led initiatives carried forward with increased momentum in the local and international market.

The gross margins of the company remained the same at 29%.

On the expenses front, NATF reported 16% YoY increase in Distribution Costs, 8.83% YoY increase in Administrative Expenses, whereas, other expenses incurred by the company moved up by 5.8% during the year.

Even though the company saw an increase in taxes by 86.62% YoY, the overall impact on the net profit was still positive.

Alongside financial results, the company also announced a cash dividend of Rs 5 per share i.e. 100% for FY20.

In its BODs meeting, the board also recommended issue of 25% fully paid bonus shares in the proportion of one share for every four shares held.

Copyright Mettis Link News