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

 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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Posted on: 2018-10-18T10:18:00+05:00

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