Abbott Laboratories (Pakistan) Limited (PSX: ABOT) announced its stellar result for FY16 which saw the company keeping its increased profitability trend intact. The companys sales witnessed a 10 percent year-on-year increase due to an improved product mix, which led to the gross profit increasing by 14 percent as compared to the previous year. The company also managed to increase its gross profit margin by 119 bps at 40 percent for FY16.
Selling and distribution expenses picked up 13 percent as compared to the previous year, which is attributable to increased advertisement and promotional expenditure on new product launches. Abbott saw an increase in other charges by 13 percent with a simultaneous drop in other income of 12 percent.
However, this had little impact on the bottomline, with the leading pharmaceutical player posting a profit after tax of Rs4 billion a growth of 12 percent as compared to FY15. This led to the EPS of the company rising from Rs36.6 in FY15 to Rs41.1 in FY16. Abbotts announcement of a final cash dividend at Rs30 per share (300%) was also a boon for investors. The dividend is in addition to the interim dividend of Rs10 per share which has already been paid.
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