Tax benefits reverse decline in Engro Food's pre-tax profits

MG News | October 18, 2018 at 10:18 AM GMT+05:00

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October 18, 2018 (MLN): In a fortunate turn of events, Engro Food’s overall profits for the nine month period ended on September 30, 2018 have witnessed a remarkable rise of 33% although its pre-tax profits suffered a 31% decline as compared to the corresponding period of last year.

As per an official report on the company’s financial earnings, Engro Foods witnessed a drop of Rs.3.2 billion in its top-line earnings, while its gross profits came down by 4.7% over the year.

That, coupled with increments in overall expenses and finance cost weighed down the company’s pre-tax profits by 31% or Rs.184.3 million.

However, a relief worth Rs.106.2 million in shape of tax benefits reversed this decline and pulled up Engro Food’s total profits from Rs.385.8 million to Rs.513.2 million.

Moreover, the basic and diluted earnings per share also surged by Rs.0.17 per share.

Profit and Loss Account for the nine months ended September 30th 2018 ('000 Rupees)
	Sep-18	Sep-17	% Change
Net Sales	23,942,195	27,135,501	-11.77%
Cost of Sales	(19,530,401)	(22,505,365)	-13.22%
Gross Profit	4,411,794	4,630,136	-4.72%
Distribution and Marketing Expenses	(3,189,068)	(3,185,659)	0.11%
Administrative Expenses	(655,687)	(613,636)	6.85%
Other Operating Expenses	(85,086)	(73,181)	16.27%
Other Income	396,236	225,250	75.91%
Operating Profit	878,189	982,910	-10.65%
Finance Cost	(471,184)	(391,620)	20.32%
Profit before Taxation	407,005	591,290	-31.17%
Taxation	106,186	(205,532)
Profit/ (loss) for the Period	513,191	385,758	33.03%
Earnings per Share - Basic and Diluted (Rupees)	0.67	0.50	34.00%

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