ABL’s profit in 2021 drops by 5%

KARACHI: Allied Bank Limited on Thursday reported a 4.75% drop in annual net profit, due to an increase in markup net income.

In its statement to the Pakistan Stock Exchange (PSX), the bank announced a net profit of 17.503 billion rupees for the year ended December 31, compared to 18.377 billion rupees the previous year. The bank also announced a final cash dividend of Rs2/share, which is in addition to the cash dividend of Rs6 already paid.

Earnings per share (EPS) came in at Rs15.29, down from Rs16.05 last year.

The bank said its revenue for the year reached 118.654 billion rupees from 110.549 billion rupees a year earlier. However, its profit margin fell from Rs 62.153 billion to Rs 73.092 billion which reduced the profit margins. An analyst report from Arif Habib Ltdn (AHL), a brokerage, said ABL reported earnings for CY21 at 17.5 billion rupees (EPS: 15.29 rupees), illustrating a decline in five percent year-on-year and one percent on a quarterly basis (T4CY21 EPS: Rs 3.76). “While NFI growth and provisioning reversal supported overall earnings, full-year profitability declined in Year 21, primarily due to lower NII (-6% YoY ),” the report said.

Kohat Cement’s H1 profit increases 103%

Kohat Cement Company Limited announced a 103% increase in its half-year net profit, thanks to an increase in net sales.

The company reported a net profit of 2.984 billion rupees for the six months ended December 31, compared to 1.472 billion rupees the previous year.

The company did not announce any dividend for the period.

The EPS came in at Rs14.86, down from Rs7.33 during the same period last year.

The company said its revenue for the half year reached 15.015 billion rupees from 11.108 billion rupees a year earlier.

For the quarter ended December 31, the company announced a profit of Rs1.586 billion against Rs965.327 million.

During this period, EPS was recorded at Rs7.90 against Rs4.81 recorded a year ago.

Along with the result, the board announced an investment in Ultra Kraft (Private) Limited, through a Rs 600 million short-term funding facility for its associated company to meet the cash requirements of rolling. This will result in a three-month mark-up of KIBOR plus 1.5% or the company’s average cost of borrowing, whichever is greater, to be paid quarterly. Non-payment within 15 days of the end of the quarter should additionally be subject to a surcharge of five percent per annum on the outstanding amount.

In addition, Kohat Cement is investing in Ultra Kraft through a corporate guarantee to National Bank of Pakistan, up to Rs 400 million, for a period of 7 years. In return, NBP will provide long-term financing to the associated company.

KOHC will receive a commission of 0.12% per quarter or the average rate at which commission is charged to the firm, whichever is greater. Failure to comply with this instruction within 15 days of the end of the quarter or non-payment of the commission will be penalized by 0.05% per quarter.

An AHL report says the company posted a 38% year-on-year jump in the quarter under review to Rs 8.2 billion, helped by a notable 42% increase in retention prices which offset the impact of a minor 3% decline in total sales to 934,000 tonnes. .

Nestlé Pakistan’s annual profit jumps 44%

Nestlé Pakistan Limited’s annual net profit increased by 44% on higher revenue growth in 2021.

In a notice to PSX, the company reported net profit of Rs 12.768 billion for the year ended December 31, 2021, compared to Rs 8.884 billion in 2020. EPS was Rs 281.55 in 2021 compared to Rs 195 .91 rupees in 2020. .

The company announced a final cash dividend of Rs 90 per share compared to Rs 61 per share in 2020.

Volume growth, cost reduction initiatives across the value chain, and portfolio and pricing management contributed to improved profitability, the company said in a separate statement.

The gradual resumption of economic activities during the year enabled the company to ensure uninterrupted supply and availability of products, the expansion of digital distribution and to continue innovation and renovation initiatives supported by investments behind the brands.

The company expects inflation to remain elevated and challenges posed by record high commodity prices and global supply chain disruptions to continue into 2022. These, coupled with recent fiscal measures imposed, would probably have a negative impact on the already deteriorating purchasing power of consumers.

Despite this, Nestlé remains cautiously optimistic that it will continue its recovery journey in the year ahead.

Engro Corp’s annual profit up 19%

Engro Corporation announced a 19% increase in its annual net profit, due to an increase in net sales.

In its consolidated statement to the PSX, the company reported net profit of 52.612 billion rupees for the year ended December 31, compared to 44.111 billion rupees the previous year.

The company has also announced a final cash dividend of Re1/share, which is in addition to the interim dividend already paid at Rs24/share.

The EPS came in at Rs48.50, down from Rs43.57 last year.

The company said its revenue for the year rose to 311.587 billion rupees from 248.817 billion rupees a year earlier.

The company said its cost of sales for the period also rose to 212.133 billion rupees from 172.773 billion rupees the previous year.

However, the company’s other income fell to 12.222 billion rupees during this period from 17.738 billion rupees during the same period last year.

The company, in a statement, said its own source revenue grew to Rs 20.68 billion in 2021 from Rs 15 billion in 2020, showing a substantial growth of 38%. The increase in income was mainly due to higher dividends received from Engro Polymer & Chemicals Limited (EPCL) and Engro Fertilizers Limited (EFERT), which in turn were driven by strong underlying business performance.

The domestic market witnessed a strong performance from the agricultural sector in 2021. As a result, EFERT reached a historical milestone of the highest ever urea sales of 2,295 kilotons in 2021 compared to 2,057 KT in 2020. Due to the turnaround from the Base and Enven plant, urea production during the year reduced from 2,264 KT in 2020 to 2,105 KT in 2021.

EPCL recorded sales of 70.02 billion rupees against 35.33 billion rupees in 2020. Net profit increased from 5.73 billion rupees in 2020 to 15.06 billion rupees in 2021, which shows a 163% increase attributable to increased volumetric sales, efficient operations, and higher international prices.

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