SEARLE reports net profit growth of 12.5% YoY in FY20

September 29, 2020 (MLN): Searle Company  Limited witnessed a 12.5% YoY increase in net profits for FY20 to Rs 2.548 billion compared to the profits of Rs 2.265 billion reported in FY19.

 The earnings per share of the company also exhibited an increase of 12% YoY to Rs 11.77 as opposed to Rs 10.55 last year.

Other than this, the Board of Directors of SEARLE announced a final cash dividend for the year ended June 30, 2020, of Rs 2.50 per share i.e. 25%.

In FY20, the company’s net turnover increased from Rs 18 billion to Rs 20 billion, depicting a growth of 13.36% YoY, while its cost of goods sold also showed a growth of 14% YoY, accordingly, the gross profit margin of the company decreased marginally from 48% to 47%.

On the cost side, the distribution costs went up by 3.09% YoY from Rs 4.28 billion to Rs 4.41 billion. Moreover, administrative costs rose by 8% to Rs 1.18 billion.

Meanwhile, the major highlight is the upsurge in other income which showed more than two-fold growth to Rs 505 million.

However, it was the rise in finance cost and tax expenses which ballooned by 56% and 95%, YoY respectively which restricted the growth in the company’s net profits.

Consolidated Statement of Profit or Loss for the Year ended June 30th, 2020 ('000 Rupees)

 

Jun-20

Jun-19

% Change

Revenue from contracts with customers

 20,474,842

 18,062,107

13.36%

Cost of sales

 (10,769,089)

 (9,462,243)

13.81%

Gross profit

 9,705,753

 8,599,864

12.86%

Distribution costs

 (4,417,290)

 (4,284,999)

3.09%

Administrative expenses

 (1,188,766)

 (1,103,218)

7.75%

Loss Allowance

 –

 (13,246)

Other operating expenses

 (261,841)

 (161,748)

61.88%

Other income

 505,957

 234,445

115.81%

Profit for operations

 4,343,813

 3,271,098

32.79%

Finance cost

 (684,953)

 (438,870)

56.07%

Profit before income tax

 3,658,860

 2,832,228

29.19%

Income tax expense

 (1,110,813)

 (566,932)

95.93%

Profit for the year

 2,548,047

 2,265,296

12.48%

Basic and diluted earnings per share (Rupees)

 11.77

 10.55

11.56%

 

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Posted on: 2020-09-29T10:49:00+05:00

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