October 24, 2018 (MLN): Packages Limited (PKGS) have reported a decline of 75.27% in their net profits, for the nine months period ended 30th September 2018. The sharp decline in the profits was a result of increase on Operating and Finance costs by substantial margins.
According to the notification issued to PSX, the company’s top-line earnings soared by 87.34%, mainly due to improvement in domestic sales by 92.03% and international sales by 8.32%. However, an increase in cost of sales by 114.6% cancelled out most of the positive impact of sales.
The Administrative expenses and Distribution costs increased by 33.83% and 66.85% respectively, along with other operating expenses which augmented by 33.93%. This coupled with a decline in non-core income by 9.35% further struck the financial position of the company.
Nonetheless, the drop in investment income caused most of the damage as it plummeted by 43.04% i.e. Rs. 1.6 billion. Furthermore, absence of gains relating to business combinations also contributed in the deterioration of profits for the said period.
In spite of taxation reporting a decrease of 44.98%, the overall impact on ultimate profits of the company was still horrendous.
The Earnings per share of the company were stated at 15.58%, i.e. down by 77.72% as compared to the corresponding period last year.
Profit and loss account for the nine months ended September 30th 2018 (Rupees’000) |
|||
---|---|---|---|
|
Sep-18 |
Sep-17 |
% Change |
Local sales |
44,982,436 |
23,424,529 |
92.03% |
Export sales |
557,750 |
514,928 |
8.32% |
Gross sales |
45,540,186 |
23,939,457 |
90.23% |
Sales tax |
-5,636,188 |
-2,626,420 |
114.60% |
Commission |
-9,934 |
-17,799 |
-44.19% |
Net sales |
39,894,064 |
21,295,238 |
87.34% |
Cost of sales |
-34,306,804 |
-16,705,457 |
105.36% |
Gross profit |
5,587,260 |
4,589,781 |
21.73% |
Administrative expenses |
-1,714,987 |
-1,281,485 |
33.83% |
Distribution and marketing costs |
-1,988,873 |
-1,192,015 |
66.85% |
Other operating expenses |
-475,215 |
-357,502 |
32.93% |
Other income |
115,609 |
127,538 |
-9.35% |
Finance costs |
-1,502,355 |
-737,011 |
103.84% |
Investment income |
2,203,580 |
3,868,499 |
-43.04% |
Gains and losses relating to business combinations |
2,492,710 |
||
Share of profit of investments accounted for using the equity method -net of tax |
104,490 |
273,303 |
-61.77% |
Profit before taxation |
2,329,509 |
7,783,818 |
-70.07% |
Taxation |
-735,478 |
-1,336,783 |
-44.98% |
Profit for the period |
1,594,031 |
6,447,035 |
-75.27% |
Earnings per share from operations attributable |
15.58 |
69.93 |
-77.72% |
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