April 25, 2019 (MLN): Packages Limited (PKGS)’s net profit in its first quarter that ended on March 31, 2019, has been reported at Rs.702 million (EPS: Rs.7.5) which is an applaud-able achievement for the company as it successfully expanded its net income by nearly 3 times compared to last year.
In the previous quarter, PKGS had sustained a tragic loss worth Rs.469 million due to higher cost of raw material in light of PKR devaluation. Considering that, the latest results mark considerable improvement in the company’s performance.
The rise in net income is mainly accredited to an investment income of Rs.1 billion which was added to the company’s inflow.
This inflow annulled the negative impact of higher distribution & marketing costs, as well as the financing cost.
Financial Results for the first quarter ended March 31, 2019 ('000 Rupees)
Mar-19
Mar-18
% Change
Net sales
14,657,396
13,404,607
9.35%
Cost of sales
(12,550,729)
(11,446,320)
9.65%
Gross profit
2,106,667
1,958,287
7.58%
Administrative expenses
(578,679)
(592,429)
-2.32%
Distribution and marketing costs
(756,757)
(600,068)
26.11%
Other expenses
(119,355)
(75,172)
58.78%
Other income
48,190
46,769
3.04%
Profit from operations
700,066
737,387
-5.06%
Finance cost
(771,660)
(428,171)
80.22%
Investment income
1,096,038
–
Share of profit/(loss) of investment accounted for using equity method- net of tax
