October 30, 2023 (MLN): Roshan Packages Limited (PSX: RPL) recorded an increase of 96.45% YoY in its profitability, clocking in its profit after tax at Rs63.64 million [EPS: Rs0.45], compared to a profit of Rs32.39m [EPS: Rs0.23] in the same period last year (SPLY).
Going by the results, the company's top line soared by 15.61% YoY to Rs3.11bn as compared to Rs2.69bn in SPLY.
The cost of sales rose by 16.50% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 9.18% YoY to Rs355.33m in 1QFY24.
During the review period, other income inflated by 2.12x YoY to stand at Rs25.38m in 1QFY24 as compared to Rs11.97m in SPLY.
On the expense side, the company observed a fall in administrative expenses by 1.93% YoY to clock in at Rs68.87m, while completely eliminating other expenses during the review period.
The company’s finance costs rose by 18.09% YoY and stood at Rs87.99m as compared to Rs74.51m in 1QFY23, mainly due to the significant rise in the policy rate set by the State Bank of Pakistan.
However, efficient management of working capital reduced the impact of increased borrowing rates.
On the tax front, the company paid a higher tax worth Rs53.31m against the Rs27.34m paid in the corresponding period of last year, depicting a rise of 95% YoY.
Outlook
As per the transmission of the results posted by the company on the PSX, RPL is poised to seize upcoming opportunities in light of recent administrative measures taken by the Government of Pakistan.
These measures include enhanced controls to combat smuggling and foster a level playing field, in line with the company's commitment to ethical and transparent operations.
RPL is strategically positioned to benefit from evolving trade dynamics with Afghanistan, offering innovative packaging solutions to cater to emerging markets.
As the Fast-Moving Consumer Goods (FMCG) sectors continue to grow in Pakistan, so does the demand for quality packaging solutions.
RPL stands ready to meet this demand, having proactively enhanced production capabilities and supply chain strength.
The company is committed to delivering sustainable, customer-centric packaging solutions that empower businesses and contribute to Pakistan's economic growth, it added.
| Consolidated (un-audited) Financial Results for Quarter ended 30 September, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 3,111,236 | 2,691,126 | 15.61% |
| Cost of sales | (2,755,901) | (2,365,658) | 16.50% |
| Gross Profit | 355,335 | 325,468 | 9.18% |
| Administrative expenses | (68,870) | (70,228) | -1.93% |
| Selling and distribution expenses | (95,288) | (96,759) | -1.52% |
| Other operating expenses | (11,620) | (6,454) | 80.05% |
| Other income | 25,383 | 11,970 | 112.06% |
| Finance cost | (87,989) | (74,513) | 18.09% |
| Other expenses | – | (29,750) | – |
| Profit before taxation | 116,951 | 59,734 | 95.79% |
| Taxation | (53,313) | (27,339) | 95.00% |
| Net profit for the period | 63,637 | 32,394 | 96.45% |
| Basic earnings/ (loss) per share | 0.45 | 0.23 | – |
Amount in thousand except for EPS
RPL and KSE100 YTD Performance
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Posted on: 2023-10-30T15:42:51+05:00
