February 28, 2022 (MLN): The Searl Company Limited (SEARL) has posted a 4% YoY decline in net profits to Rs1.45 billion (EPS: Rs4.54) compared to the profits of Rs1.52 billion (EPS: Rs4.78) earned in the corresponding period last year.
The decline in profitability came largely from exchange rate fluctuations, an increase in distribution and finance cost.
The net revenues of the company clocked in at Rs14.56 billion, up by 18% YoY. On the other hand, the cost of sales was higher during the review period as it jumped by 23% YoY, allowing the gross margin to decline to 45% from 47%.
On the cost front, the distribution expenses and other expenses surged by 18%YoY and 20% YoY respectively, this along with the 42% YoY increase of finance expense owing to the acquisition of OBS, greatly hampered the profitability of the company.
The company recorded an effective tax rate of 30%, which remained unchanged compared to last year.
The net margin was recorded at 10% compared to 12% in 1HFY21.
|
Consolidated Statement of Profit or Loss for the year ended June 30 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Revenue |
14,567,196 |
12,378,375 |
17.68% |
|
Cost of sales |
(8,081,720) |
(6,572,453) |
22.96% |
|
Gross profit |
6,485,476 |
5,805,922 |
11.70% |
|
Distribution costs |
(2,778,710) |
(2,349,443) |
18.27% |
|
Administrative expenses |
(676,629) |
(677,114) |
-0.07% |
|
Other operating expenses |
(149,361) |
(187,767) |
-20.45% |
|
Other income |
132,196 |
236,926 |
-44.20% |
|
Profit from operations |
3,012,972 |
2,828,524 |
6.52% |
|
Finance cost |
(919,181) |
(648,779) |
41.68% |
|
Profit before income tax |
2,093,791 |
2,179,745 |
-3.94% |
|
Income tax expense |
(636,183) |
(657,517) |
-3.24% |
|
Profit for the period |
1,457,608 |
1,522,228 |
-4.25% |
|
Basic and diluted earnings per share (Rupees) |
4.54 |
4.78 |
-5.02% |
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