ICI Pakistan has announced its financial results for the half-year that ended on December 31st, 2019.
The company has shown an impressive growth during the period as it posted a consolidated profit of Rs. 1.84 billion, showing an increase of 124% as compared with 824.90 million recorded in the same period last year.
On a standalone basis, the company has posted a profit of Rs. 2.07 billion, up by 130% from the previous year.
The net sales of the company stood at Rs. 29,74 billion, showing an increase of 5% as compared with Rs. 28.40 billion recorded in the corresponding period last year.
The net sales include the results of the company’s subsidiaries: ICI Pakistan PowerGen Limited, Cirin Pharmaceuticals (Private) Limited and NutriCo Morinaga (Private) Limited. The cost of sales was posted at Rs. 23.78 billion which took the gross profit to Rs. 5.96 billion, up by 37.3% as compared with Rs. 4.34 billion.
During the period, the operating results of ICI were increased by 77% to Rs. 3.45 billion in comparison to the same period last year. The improvement in operating profit was achieved primarily on the back of a better sales mix and improved manufacturing efficiencies.
It posted an exchange gain of Rs. 28.11 million as compared to an exchange loss of Rs. 216 million.
Despite higher interest expense during the period these improved results were driven mainly by operational excellence and a stable exchange rate in comparison to the corresponding period last year. The Company recognized Rs. 286 million as a share of profit from NutriCo Pakistan (Private) Limited.
The board has also announced an interim cash dividend in respect of the financial year ending June 30, 2020, at the rate of 110% i.e. Rs. 11 per share of Rs. 10. Earnings per share increased to Rs. 20.05 from Rs. 8.83 during the half-year.
The company further informed that they have received an expression of interest from an international financial institution to invest Rs. 7 billion as growth capital. However, they have not decided to proceed with the transaction as the company’s cash flows are sufficient to fund any current growth plans.
ICI’s script at the bourse closed at Rs. 722.48, up by Rs. 37.66 or 5.50% with a turnover of 215,350 shares on Tuesday.