Packages Ltd endure 75.27% decline in profits for 3QFY18

October 24, 2018 (MLN): Packages Limited (PKGS) have reported a decline of 75.27% in their net profits, for the nine months period ended 30^th 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.

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