National Foods’ net profits surge by 43% YoY during 1QFY21

October 22, 2020 (MLN): National Foods Limited (NATF) has announced its financial results for the three months ended on September 30, 2020 wherein the bottom-line of the company grew by around 43% YoY, to Rs 594 million, translating into an EPS of Rs 3.54 when compared with the same period last year in which net profits were recorded at Rs 416 million (EPS: Rs 2.98).

During the 1QFY21, the top line witnessed a surge of 12% YoY to Rs 8.09 billion owing to the continuous growth of volumetric local sales, resulting in an 8.5% YoY increase in gross profits despite an increase in the cost of sales.

On the cost front, the positive highlight is the decrease in its major expense heads as distribution cost came down by nearly 8% YoY due to sales and marketing promotion while administrative cost and other expenses jumped by 27% and 5.46%, YoY, respectively.  

As per the financial statement issued by the company, the other positive highlight includes an 18% decrease in financial charges on the back of a steep decline in interest rate.

Meanwhile, the company paid taxes worth Rs 189 million, ballooned by 25% YoY, restricting the growth in the company’s net profits.

Consolidated Financial Results for the first quarter ended September 2020 ('000 Rupees)

 

Sep-20

Sep-19

% Change

Sales

 8,090,465

 7,234,824

11.83%

Cost of sales

 (5,761,498)

 (5,088,639)

13.22%

Gross profit

 2,328,967

 2,146,185

8.52%

Distribution cost

 (1,120,634)

 (1,214,459)

-7.73%

Administrative expenses

 (340,374)

 (267,768)

27.12%

Other expenses

 (34,320)

 (32,542)

5.46%

Other income

 18,257

 18,301

-0.24%

Operating profit

 851,896

 649,717

31.12%

Finance costs

 (67,237)

 (81,696)

-17.70%

Profit before taxation

 784,659

 568,021

38.14%

Taxation – net

 (189,726)

 (151,220)

25.46%

Profit after tax

 594,933

 416,801

42.74%

Basic and diluted earnings per share – Rupees

 3.54

 2.98

18.79%

 

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Posted on: 2020-10-22T11:27:00+05:00

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