Philip Morris’s profitability increases substantially due to relatively slower expense growth

March 7, 2019 (MLN): Philip Morris Pakistan Limited (PMPK) has reported its net profit at Rs. 543 million for the year ended December 2018, which increased substantially by 184. 36% as compared to last year’s profit. This increase in profit is attributable to relatively slower rise in expenses compared to company’s inflows.

During the period, company’s other expenses rose by 73% which were dominated by 74% decline in finance cost, 59% increase in company’s other income and 74% decline in taxes.

The company reported its earnings per share at Rs.1.68 for the said period.

 

Financial Results for the year ended December 31, 2018 ('000 Rupees)

 

Dec-18

Dec-17

% Change

Turnover –  net

 16,199,912

 13,966,525

15.99%

Cost of sales

 10,175,924

 8,888,275

14.49%

Gross profit

 6,023,988

 5,078,250

18.62%

Distribution and marketing expenses

 3,570,578

 2,926,658

22.00%

Administrative expenses

 1,389,471

 1,355,237

2.53%

Other expenses

 686,981

 396,448

73.28%

Other income

 263,044

 165,210

59.22%

Operating profit

 640,002

 565,117

13.25%

Finance cost and bank charges

 23,094

 88,802

-73.99%

Profit before taxation

 616,908

 476,315

29.52%

Taxation

 73,757

 285,307

-74.15%

Profit after taxation

 543,151

 191,008

184.36%

Earnings per share – basic and diluted (Rupees)

 1.68

 (1.89)*

 

*After adjustment of preferance dividend.

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Posted on: 2019-03-07T16:12:00+05:00

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