ICI Pakistan PAT stood at Rs 825m down by in six months

ICI Pakistan, Profit increase, financial result announced, Cirin Pharmaceuticals (pvt) Ltd, Nutrico Morinaga (pvt) Ltd, Soda Ash

KARACHI: The Board of Directors of ICI Pakistan Limited announced that its net turnover for the six month period under review rose by 21 per cent to Rs 28,408 million till December 2018 compared to the same period last year.

On a consolidated basis, including the results of the company’s subsidiaries, ICI Pakistan PowerGen Limited, Cirin Pharmaceuticals (Private) Limited and NutriCo Morinaga (Private) Limited, net turnover for the six month period under review rose by 21 per cent to Rs 28,408 million compared to the same period last year, with growth impetus being provided by Polyester (30%), Soda Ash (42%)’ and Chemicals & Agri Sciences (8%).

Operating result for the six month period under review was lower by 9 per cent at Rs 1,949 million in comparison to the SPLY, with Soda Ash showing improved sales performance attributable to the successful commissioning of 75,000 tons per annum (TPA) per annum expansion plant and higher margins of the Agri Division.

Profit after tax (PAT) for the six month period under review at Rs 825 million is 49 per cent lower than the SPLY, largely due to interest-rate driven higher finance cost and lower operating results. On an unconsolidated basis, PAT for the six months period under review at Rs 900 million and EPS at Rs 9.75 are 38 per cent lower than the SPLY.

The Board has approved interim cash dividend in respect of the financial year ending June 30, 2019, at the rate of 45% i.e. Rs 4.50/- per share of Rs 10/- each to be payable to the members.

New projects to ensure sustained future growth

Alongside the sound performance of Businesses for the half year, a number of exciting projects will contribute significantly to the Company’s growth aspirations.

The Board has authorised Management to proceed with Phase 2 of the 150,000 TPA Light Ash expansion of the Soda Ash Plant being expansion of 75,000 TPA. The Company has already successfully commissioned Phase 1 of the Project (75,000 TPA in February 2018).

This is in addition to a Dense Ash expansion of 70,000 TPA, which will position the Company to cater to the growing needs of the market.

The Masterbatch manufacturing project is expected to be completed soon and upon completion, it will enhance the product portfolio of Chemicals & Agri Sciences Business.

Following ICI Pakistan Limited’s majority-owned infant formula joint venture with NutriCo Morinaga (Private) Limited, civil works are currently underway to construct a state-of-the-art manufacturing facility to produce Morinaga Infant Formula, which will be manufactured, distributed and sold by the Company.

The Animal Health Division has engaged Trowe Nutrition for a long-term partnership related to their innovative portfolio of both livestock and poultry segments. Furthermore, ICI Pakistan Limited has also been granted cattle feed manufacturing license in October 2018.

Despite challenges in the economic and operating environment, ICI Pakistan Limited’s results for the half year demonstrate a continued drive for improved performance, fulfilling customer needs with innovative products and proactively exploring opportunities for both organic and inorganic growth.

The above mentioned recent developments directly support the Company’s brand promise of Cultivating Growth and, going forward, will enable it to create greater value for the stakeholders.

 

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