Bata Pakistan Limited (Bata) had quite a terrible first quarter this year with bottom line profits dropping by 19 percent year-on-year in 1QCY15.
The firm’s net turnover saw a decent growth of 10 percent over the same period last year and clocked-in at Rs3.27 billion. Considering that last year, i.e. in 1QCY14, the firm had posted a 5 percent year-on-year growth in top line, and that there was no religious festival or school kick off season in the Jan-Mar quarter, the 10 percent growth appears quite decent.
Bata’s gross margins weakened only marginally – from 37.9 percent in 1QCY14 to 37.3 percent 1QCY15. However, the firm’s distribution and administration expenses rose cumulatively by 100 basis points as a percentage of sales.
Bata’s other income saw a decline of 61 percent in the year-on-year analysis. If the annual report of CY14 is any guide, then the decline came mainly on account of falling income on bank deposits in the wake of lower interest rates as the firm had huge bank deposits at the end of December 2014.
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Bata Pakistan Limited
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Rs (mn) 1QCY14 1QCY15 chg
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Sales 2,984 3,277 10%
Cost of sale 1,853 2,055 11%
Gross Profit 1,132 1,222 8%
Distribution cost 581 654 13%
Administrative expenses 194 232 19%
Other expenses 29 28 -4%
Other income 79 31 -61%
Operating profit 406 339 -17%
Profit before taxation 399 331 -17%
Taxation 116 101 -13%
Profit after taxation 283 230 -19%
EPS (Rs) 37.43 30
Gross profit margin 38% 37%
Net profit margin 9% 7%
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Source: KSE notice
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