RPL declares 10% DPS as GP margin improves by 1.72% in FY23

October 02, 2023 (MLN): Roshan Packages Limited (PSX: RPL) has reported a profit of Rs29.41 million [EPS: 0.21] for the fiscal year 2023, compared to a profit of Rs190.18m [EPS: 1.34] reported in the Same Period Last Year (SPLY), reflecting a significant decline of 84.53% YoY.

Going by the results, the company's top line improved by 16.56% YoY to Rs12.06bn as compared to Rs10.35bn in SPLY.

The cost of sales also rose by 12.85% YoY but was lesser than proportionate to sales decline, which improved the gross profit by 39.26% YoY to Rs1.27bn in FY23.

With improved gross profit, RPL's GP margin rose by 1.72% to 10.56% in FY23.

Along with the FY23 financial results, the board of directors of RPL has announced a cash dividend of 10% per share in FY23.

On the expense side, the company observed an increase in Distribution expenses by 37.02% YoY and other operating expenses by 68.09% YoY to clock in at Rs390.04m and Rs28.08m respectively during the review period.

Additionally, RPL incurred an increase in the allowance for expected credit losses of Rs20.36m compared to a reversal of Rs16.87m in FY22.

During the review period, other income went up by 3.86% YoY to stand at Rs57.51m in FY23 as compared to Rs55.37m in SPLY.

The company’s finance costs soared by 89.44% YoY and stood at Rs318.51m as compared to Rs168.14m in FY22, mainly due to higher interest rates.

On the tax front, RPL incurred a tax expense of Rs187.78m in FY23, against a tax rebate of Rs2.81m in SPLY.

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