January 28, 2021 (MLN): Archroma Pakistan Limited (ARPL) has unveiled its financial results for the first quarter ended December 31, 2020, as per which the company has posted its profit after tax of Rs 479 million (EPS: Rs 14.06) i.e. nearly 44% higher than the net profits of Rs 333 million (EPS: Rs 9.77) of the corresponding period last year.
During the period, the increase in earnings seen in the financial results below is a result of higher volumetric sales, up by 10.14%, despite a 5.07% increase in the cost of goods sold, expanding gross margins from 27% to 30%.
On the cost front, the distribution and administrative expenses jumped by 5.5% and 9.2%, YoY respectively, while the company bore no impairment loss during the first quarter that supported the financial stability of ARPL.
Furthermore, an 85% increase in other income and a significant drop in finance cost by 71.1% YoY amid a lower interest regime lifted the bottom-line.
Meanwhile, the tax expenses of the company went up by 2.04 times YoY during the period.
Financial Results for the first quarter ended December 31, 2020 ('000 Rupees) |
|||
---|---|---|---|
|
Dec-20 |
Dec-19 |
% Change |
Net sales |
5,100,296 |
4,630,645 |
10.14% |
Cost of goods sold |
(3,573,642) |
(3,401,286) |
5.07% |
Gross profit |
1,526,654 |
1,229,359 |
24.18% |
Distribution and marketing expenses |
(513,509) |
(486,663) |
5.52% |
Administrative expenses |
(157,804) |
(144,468) |
9.23% |
Impairment loss |
– |
(2,442) |
– |
Other expenses |
(61,256) |
(37,922) |
61.53% |
Other income |
16,844 |
9,087 |
85.36% |
Finance cost |
(24,150) |
(83,515) |
-71.08% |
Profit before taxation |
786,779 |
483,436 |
62.75% |
Taxation – net |
(307,069) |
(149,994) |
104.72% |
Profit after taxation |
479,710 |
333,442 |
43.87% |
Earnings per share – basic and diluted (Rupees) |
14.06 |
9.77 |
43.91% |
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