September 14, 2020 (MLN): Feroze1888 Mills Limited has earned a profit of Rs. 2.94 billion (EPS: 7.8) during the year ended June 30, 2020, i.e. almost 51% lower than the amount earned in the previous year.
The Board of Directors of the company also recommended a final cash dividend for the year at Rs. 0.59 per share i.e. 5.9%. This is in addition to interim dividend already paid at Rs. 1.75 per share i.e. 17.5%.
According to the company’s financial results, the revenue grew by 6.3%, whereas the cost of sales increased by 9.7%, causing the gross profit to decline by 3.1%.
The company also experienced a 12.3% and 11.1% rise in its distribution and administrative expenses, respectively. Other setbacks came in the form of an 87.2% increase in other expenses and 89.3% decline in non-core income.
On top of that, the company suffered a 1.22x increase in its finance cost and around 50% increase in income tax expense, thus, leading to such a substantial decrease in yearly profits.
Financial Results for the year ended June 30, 2020 (Rupees’000) |
|||
---|---|---|---|
Jun-20 |
Jun-19 |
% Change |
|
Sales |
31,205,677 |
29,348,438 |
6.3% |
Cost of sales |
(23,698,998) |
(21,600,408) |
9.7% |
Gross profit |
7,506,679 |
7,748,030 |
-3.1% |
Distribution expense |
(2,276,372) |
(2,026,890) |
12.3% |
Administrative expenses |
(1,150,779) |
(1,035,928) |
11.1% |
Other expenses |
(667,832) |
(356,736) |
87.2% |
Other income |
218,888 |
2,048,510 |
-89.3% |
Finance cost |
(346,959) |
(155,892) |
122.6% |
Profit before taxation |
3,283,625 |
6,221,094 |
-47.2% |
Taxation |
(346,404) |
(231,284) |
49.8% |
Profit after taxation |
2,937,221 |
5,989,810 |
-51.0% |
Earnings per share |
7.8 |
15.9 |
-50.9% |
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