Topline lifts COLG’s profitability by 38.6% YoY in FY20

August 25, 2020 (MLN): Colgate-Palmolive Pakistan Limited has unveiled its financial performance for the year ended June 30, 2020, wherein the company has reported net profits worth Rs 4.8 billion, depicting a growth of 38.6% YoY against the profits of Rs 3.50 billion in the same period of the previous year.

This has translated into earnings per share which clocked in at Rs 84.50 against earnings per share of Rs 61.01 in the aforementioned period.

The financial results announced today were also accompanied by a final cash dividend for the FY20 at Rs 23.50 per share i.e. 235%. This is in addition to interim cash dividend already paid at Rs22.50 per share i.e. 225%.

Moreover, the board of Directors has recommended issuing a bonus share in the proportion of 1 share for every 10 shares held i.e. 10%.

According to the financial results issued to PSX, the company witnessed a 19%  increase in topline which was attributable to a volumetric increase, resulting in an upsurge of gross profits by 20.5% YoY to Rs 12.61 billion.

On the cost front, the selling & distribution costs and administrative expenses and other expenses went up by 7.2%YoY and 11.8% YoY, 69% YoY respectively on an account of continuous media and promotional activities along with the employee-related cost.

On the other side, during FY20, other income of the company jumped by 63% YoY to Rs 1 billion which contributed to support the financial stability of the company.

Meanwhile, the company also witnessed a more than two-fold rise in its finance cost and a 27% YoY increase in tax payments which put a limit on the company’s profitability during FY20.

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