National Foods witnesses an 83% growth in profits during 1HFY21 despite higher expenses

February 19, 2021 (MLN): National Foods Limited has posted earnings of Rs. 944 million (EPS: 4.4) for the half-year ended December 31, 2020, i.e. nearly 83% higher as compared to the earnings of the same period last year.

The revenue of the company rose by around 17.2% whereas cost of sales increased by 17%, resulting in a 17% growth in gross profits. However, the impact of these positive changes was limited by increase in administrative expenses by 18%, non-core expenses by 14%, and a decline in other income by 59%.

Further strain was caused by an increase in finance costs by 4.3%, as well as income tax expense by 14.3%.

Consolidated Financial Results for the Half-Year ended December 31, 2020 (Rupees in '000)

 

Dec-20

Dec-19

% Change

Sales

16,070,773

13,716,280

17.2%

Cost of sales

(11,510,870)

(9,827,160)

17.1%

Gross profit

4,559,903

3,889,120

17.2%

Distribution expenses

(2,436,638)

(2,391,939)

1.9%

Impairment loss on trade debts

 

12,700

 

Administrative expenses

(721,542)

(609,742)

18.3%

Other expenses

(48,819)

(42,948)

13.7%

Other income

30,970

76,361

-59.4%

Finance cost

(159,573)

(153,053)

4.3%

Profit before taxation

1,224,301

780,499

56.9%

Taxation

(280,293)

(245,273)

14.3%

Profit after tax

944,008

535,226

76.4%

Earnings per share

4.4

2.4

83.3%

 

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Posted on: 2021-02-19T19:19:00+05:00

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