March 26, 2024 (MLN): Packages Limited (PSX: PKGS) has witnessed a substantial 50.28% YoY growth in its earnings for 2023, as the profit after tax clocked in at Rs10.49 billion [EPS: Rs103.8] compared to a profit of Rs6.98bn [EPS: Rs77.49] recorded in the same period last year (SPLY).
Considering this improved financial performance, the Board of Directors of the company has declared a final cash dividend of Rs27.50 per share for ordinary shareholders.
Furthermore, the preference share/convertible stockholder (International Finance Corporation) is also entitled to payout as per the terms of the Subscription Agreement between the Company and International Finance Corporation.
Going by the results, the company's top line soared by 28.78% YoY to Rs156.97bn as compared to Rs121.89bn in SPLY.
Likewise, the cost of sales climbed 24.34% YoY to Rs120.05bn. However, the growth in sales outweighed the rise in costs due to which the gross profit of the company improved by 45.67% YoY to Rs36.92bn in 2023.
Accordingly, the gross margins improved to 23.52% as compared to 20.79% in SPLY.
On the expense side, the company observed an increase in Distribution expenses by 50.82% YoY and other expenses by 13.21% YoY to clock in at Rs7.01bn and Rs2.97bn respectively during the review period.
Similarly, PKGS's costs towards administration also grew to Rs5.15bn in 2023, up 29.77% YoY.
The Net impairment loss witnessed on financial assets also expanded 29.93% YoY to Rs289.18m in 2023.
Conversely, the company's profits were supported by investment income and Share of net profit of associates and joint ventures that clocked in at Rs997.77m and Rs289.18m.
The finance costs section shows that borrowing costs increased by 86.46% YoY and stood at Rs13.53bn as compared to Rs7.26bn in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs5bn against the Rs4.93bn paid in the corresponding period of last year, depicting a rise of 1.48% YoY.
It is pertinent to note that the overall profit of the company comprises both continuing operations and discontinued operations worth Rs10.39bn and Rs96.28m in 2023.
| Consolidated Financial Results for the year ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Revenue from contracts with customers | 156,972,082 | 121,893,589 | 28.78% |
| Cost of sales | (120,048,016) | (96,546,304) | 24.34% |
| Gross Profit / (Loss) | 36,924,066 | 25,347,285 | 45.67% |
| Distribution expenses | (7,010,391) | (4,648,181) | 50.82% |
| Administrative expenses | (5,150,083) | (3,968,767) | 29.77% |
| Net impairment loss on financial assets | (239,437) | (184,287) | 29.93% |
| Share of net profit of associates and joint ventures accounted for using equity method | 289,177 | 251,656 | 14.91% |
| Investment income | 997,773 | 1,204,252 | -17.15% |
| – | |||
| Other Income | 6,087,732 | 4,586,833 | 32.72% |
| Other Expenses | (2,968,711) | (3,420,479) | -13.21% |
| Finance Cost | (13,533,933) | (7,258,173) | 86.46% |
| Profit before taxation | 15,396,193 | 11,910,139 | 29.27% |
| Taxation | (5,003,209) | (4,930,310) | 1.48% |
| Profit from continuing operations | 10,392,984 | 6,979,829 | 48.90% |
| Profit from discontinued operations | 96,281 | 0 | – |
| Profit for the year | 10,489,265 | 6,979,829 | 50.28% |
| Basic earnings/ (loss) per share | 103.80 | 77.49 | – |
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Posted on: 2024-03-26T14:24:20+05:00
