National Foods observes 6% decline in net profits owing to rise in operating expenses

October 21, 2019 (MLN): National Food Limited has announced its financial results for the quarter ended September 2019, wherein the company reported a decline in its net profits by around 6% to Rs 416.8 million against Rs 442.6 million earned in the corresponding period last year.

This translated into earning per share which locked in at Rs 2.98 against Rs 3.46 last year.

Despite the company witnessed a rise in its topline earnings by 20%, a parallel rise in the cost of sales (22%), distribution cost (34.3%) and finance cost (44%) led the company’s net earnings to decline. Moreover, company also observed a marginal decline in its gross margins.

In addition, taxation income also incremented by 13% which further made injuries to the company’s profitability.

 

Consolidated Financial Results for the first quarter ended September 2019 ('000 Rupees)

 

Sep-19

Sep-18

% Change

Sales

 7,234,824

 5,998,904

20.60%

Cost of sales

 (5,088,639)

 (4,165,892)

22.15%

Gross profit

 2,146,185

 1,833,012

17.09%

Distribution cost

 (1,214,459)

 (903,993)

34.34%

Administrative expenses

 (267,768)

 (267,335)

0.16%

Other expenses

 (32,542)

 (41,985)

-22.49%

Other income

 18,301

 13,671

33.87%

Operating profit

 649,717

 633,370

2.58%

Finance costs

 (81,696)

 (56,686)

44.12%

Profit before taxation

 568,021

 576,684

-1.50%

Taxation – net

 (151,220)

 (134,000)

12.85%

Profit after tax

 416,801

 442,684

-5.85%

Basic and diluted earnings per share – Rupees

 2.98

 3.46

-13.87%

 

Copyright Mettis Link News

Posted on: 2019-10-21T10:47:00+05:00

30662