The Board of Directors of ICI Pakistan Limited is pleased to announce the company's financial results for the year ended June 30, 2016. Unconsolidated profit after tax for the year at Rs 2,843 million or EPS of Rs 30.78 is 34 percent higher than the same period last year. Operating result for the year at Rs 3,479 million is 14 percent higher than the same period last year due to strong performance in the Soda Ash, Life Sciences and Chemicals Businesses, which compensated for the lower operating result of the polyester business.
Net turnover of Rs 36,954 million for the year is 1 percent below prior year (Rs 37,515 million). This is primarily attributable to lower revenues in the Polyester Business, which declined 15 percent in line with the downward correction of crude oil prices and as a consequence, prices across the petrochemical chain. Net turnover in the Soda Ash Business grew by 7 percent on account of higher volumes, while the Life Sciences Business recorded a 13 percent growth in sales. Chemicals Business sales grew 5 percent compared to the same period last year.
Successful commissioning of steam and power projects during the year further enhanced the energy mix in the Soda Ash and Polyester Businesses, delivering value and easing the energy cost burden. The Soda Ash Business also witnessed the commissioning of the expanded Dense Ash and Refined Sodium Bicarbonate plants as per plan. During the year, the company also completed a further 10 percent equity participation in its Associate, NutriCo Pakistan Pvt Ltd, (Morinaga infant formula distribution business), bringing its total investment in the business to 40 percent.
On a consolidated basis (including the result of the company's wholly owned subsidiary ICI Pakistan PowerGen Limited and after recognising Rs 407 million as 'Share of Profit from Associate') profit after tax for the year at Rs 2,730 million or Rs 29.56 EPS is 20 percent higher than the same period last year.
Going forward, demand generation on account of the CPEC projects is expected to create a favourable environment for investment growth in the country. In the new financial year, planned capacity expansion projects in the Soda Ash Business are expected to further enhance performance, while the outlook for the Chemicals and Life Sciences Businesses remains positive.
The Board of Directors has recommended the Final Cash Dividend in respect of the financial year ended June 30, 2016 at the rate of 90 percent ie Rs 9 per share of Rs 10 each. This is in addition to the 65 percent Interim Cash Dividend (ie Rs 6.50 per share) already paid, as recommended by the Board of Directors.-PR
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