March 29, 2022 (MLN): Packages Limited (PKGS) has wrapped up the calendar year 2021, witnessing a profit of Rs7.15 billion, up by 57.64% YoY compared to Rs4.53bn in the year 2020, the company filing on PSX showed today.
This translated into earnings per share which locked in at Rs76.71 per share as compared to Rs50.55 per share in the corresponding period last year.
The upturn in earnings was led by the share of net profit from associates and other income.
During the year, the company’s net revenues went up by 23.61% YoY, while the cost of sales grew by 23%YoY. Accordingly, the gross margin improved to 21% from 20% in SPLY.
With regards to major expense heads, the company encountered an 18.44% YoY rise in its administrative expenses, while distribution and marketing expenses increased to Rs2.91bn.
In addition, the company’s other expenses stood at Rs1.27bn, showing a surge of 30.49%.
The main highlight of the earning statement is the amount received in terms of reversal of Impairment losses on financial assets which stood at Rs75mn in CY21, showing an up by 10x compared to CY20
Meanwhile, finance costs witnessed a drop of 25% YoY mainly due to lesser short-term borrowings.
On the tax front, the company incurred an effective tax rate of 26%, compared to 11% in CY20.
Alongside financial results, the board of directors of the company has approved the cash dividend of Rs.27.50 per share i.e. 275% for the review period.
|
Financial Results for the year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
Dec-21 |
Dec-20 |
% Change |
|
|
Revenue |
80,322,297 |
64,981,483 |
23.61% |
|
Cost of sales and services |
(63,612,824) |
(51,738,720) |
22.95% |
|
Gross profit |
16,709,473 |
13,242,763 |
26.18% |
|
Administrative expenses |
(2,866,502) |
(2,420,183) |
18.44% |
|
Distribution and marketing costs |
(2913840) |
(2,690,770) |
8.29% |
|
Reversal of Impairment losses on financial assets |
75,038 |
7,372 |
|
|
Other expenses |
(1,277,554) |
(979,042) |
30.49% |
|
Other income |
857,204 |
400,718 |
113.92% |
|
Profit from operations |
10,583,819 |
7,560,858 |
39.98% |
|
Finance cost |
(2,588,800) |
(3,455,909) |
-25.09% |
|
Investment income |
934,592 |
639,298 |
46.19% |
|
Share of net profit of associated and joint ventures accounted for using the equity method |
677339 |
340,210 |
99.09% |
|
Profit before taxation |
9,606,950 |
5,084,457 |
88.95% |
|
Taxation |
(2,456,799) |
(548,753) |
347.71% |
|
Profit for the period |
7,150,151 |
4,535,704 |
57.64% |
|
Basic earnings per share (Rupees) |
76.71 |
50.55 |
51.75% |
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