ICI Pakistan earns profit after tax 16pc higher than previous year

KARACHI: The Board of Directors of ICI Pakistan Limited here on Monday announced the Company's annual financial results for the year ended June 30, 2017 and said that the unconsolidated profit after tax for the year at PKR 3,296 million is 16% higher compared to the same period last year (SPLY).

It said that the Earnings per share (EPS) at PKR 35.69 is correspondingly 16% higher than the SPLY. This robust growth in net profit is attributable to higher operating profit, higher Dividend Income from Associate and lower exchange losses as compared to the prior year.

The statement pointed out that the operating profit for the year at PKR 4,044 million is 16% higher than the SPLY, with improved performances in the Polyester, Life Sciences and Chemicals Businesses.

Net turnover at PKR 41,364 million is 12% above net sales for the year ended June 30, 2016, which were recorded at PKR 36,954 million. The increase in sales revenue across all Businesses contributed to this performance.

The Polyester Business revenue growth of 7% was due to higher prices across the petrochemical chain, higher average Polyester Staple Fibre selling prices and increased sales of premium Black Fibre. Soda Ash net turnover grew by 2% on account of higher volumes, with Life Sciences recording a 28% growth in net turnover on the back of new product launches and growth of the existing portfolio.

Net turnover for the Chemicals Business grew by 20% against the SPLY, owing to higher sales volumes and an expanding customer base.

The Life Sciences Business significantly expanded its product portfolio and enhanced its manufacturing capabilities with two key acquisitions; Cirin Pharmaceuticals (Private) Limited and certain Wyeth Pakistan Limited-owned assets (the latter will follow completion of regulatory formalities).

Execution of a shareholders agreement for the establishment of a state-of-the-art facility to manufacture Morinaga infant formula products, along with distribution, marketing and sales of these products. This project is in process under a newly incorporated subsidiary, NutriCo Morinaga (Private) Limited, in which ICI Pakistan Limited has a majority shareholding of 51%.

The Board of Directors of ICI Pakistan Limited, during its meeting, approved a proposal to establish a facility to manufacture Masterbatch, used in the colouring/pigmentation of various plastics (PE, PP, PVC). The estimated project cost is PKR 590 million and is expected to come online in the first quarter of 2019. The proposed facility will be situated at the Company's premises at 5 West Wharf, Karachi. This project is another strategic step towards fulfilling the Company's growth aspirations by enhancing the product portfolio of its Chemicals Business.

The Board of Directors has recommended the Final Cash Dividend in respect of the financial year ended June 30, 2017 at the rate of 100% i.e. PKR 10/- per share of PKR 10/- each. This is in addition to the 80% Interim Cash Dividend (i.e. PKR 8/- per share) already paid, as recommended by the Board of Directors.