October 18, 2019 (MLN): The ongoing year seems to be a tough business year for Philip Morris Pakistan Limited (PSX: PMPK), a major Tobacco firm in Pakistan as it has reported net losses worth Rs 1.37 billion for nine-month ended September 2019 in a meeting held earlier today.
The loss per share (LPS) for the period locked in at Rs 22.31 per share.
As per the financial statement issued by the company to the bourse, the losses were recorded mainly due to the management decision to reorganize its operational footprint by closing its factory in Kotri.
The other major factors that attributed to losses were a rise in the cost of sales by 15%, a colossal upsurge in the company’s other expenses and finance cost by Rs 2.4 billion and Rs 24.7 million respectively. Moreover, a marginal decline in net revenues along with a considerable increase in the cost of sales led the gross margins to shrink by 9 percentage points.
In addition, the company also enjoyed tax incentives of Rs 394.9 million during the period which provided some comfort to the earnings.
|
Financial Results for the nine months ended September 30, 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Sep-19 |
Sep-18 |
% Change |
|
Turnover – net |
11,039,713 |
11,157,186 |
-1.05% |
|
Cost of sales |
7,232,880 |
6,295,689 |
14.89% |
|
Gross profit |
3,806,833 |
4,861,497 |
-21.69% |
|
Distribution and marketing expenses |
1,989,263 |
2,440,898 |
-18.50% |
|
Administrative expenses |
1,101,958 |
992,166 |
11.07% |
|
Other expenses |
2,825,153 |
390,178 |
624.07% |
|
Other income |
381,716 |
156,044 |
144.62% |
|
Operating profit |
(1,727,825) |
1,194,299 |
|
|
Finance cost and bank charges |
40,735 |
15,982 |
154.88% |
|
Profit before taxation |
(1,768,560) |
1,178,317 |
|
|
Taxation |
(394,930) |
296,894 |
|
|
Profit after taxation |
(1,373,630) |
881,423 |
|
|
Earnings per share – basic and diluted (Rupees) |
(22.31) |
7.18 |
|
Copyright Mettis Link News
30630
