ICI Pakistan posts 35% declining profit of Rs 1.773bn in last nine month

Sales continue to grow; Company remains positive about the future outlook as new projects near completion

KARACHI: ICI Pakistan PowerGen Limited, Cirin Pharmaceuticals (Private) Limited and NutriCo Morinaga (Private) Limited, net turnover for the nine-month period under review increased by 20 per cent to Rs  43,937 million compared to the same period last year.

The Board of Directors of ICI Pakistan Limited announced the Company’s financial results for the quarter and nine months ended March 31, 2019.

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 nine-month period under review increased by 20 per cent to Rs 43,937 million compared to the same period last year, with the growth being fuelled by Soda Ash (34 per cent), Polyester (31 per cent) and Chemicals & Agri Sciences (11 per cent).

Operating result for the nine-month period under review was marginally lower by 2 per cent at Rs 3,523 million in comparison to the same period last year, with the Soda Ash Business showing improved sales performance after successful commissioning of 75,000 tons per annum (TPA) plant expansion and higher margins of the Agri Division.

On a consolidated basis, Profit after tax (PAT) for the nine-month period under review at Rs 1,773 million is 35 per cent lower than the same period last year, due to interest-rate driven higher finance costs and higher taxation expenses. On a standalone basis, PAT for the nine-month period under review at Rs 1,655 million and EPS at Rs 17.91 are 33 per cent lower than the last year.

New projects drive optimism about future outlook:

The Company is well-positioned to maintain its growth momentum in the future as some new strategic projects are entering their final phases. These projects are expected to contribute significantly to the Company’s growth aspirations.

The Masterbatch manufacturing project is nearing completion. This project is another strategic step towards the fulfilment of the company’s growth aspirations and will enhance the product portfolio of the Chemicals & Agri Sciences Business.

Following ICI Pakistan Limited’s majority-owned infant formula joint venture with NutriCo Morinaga (Private) Limited, a state-of-the-art manufacturing facility is under construction to produce Morinaga Infant Formula, which will be manufactured, distributed and sold by the Company. Contingent on the results of trial production, commercial operations are expected to commence during the second half of calendar year 2019.

While economic headwinds are expected to persist in the form of rupee devaluation, higher inflation and input costs, the company is positioned to deliver positive results by leveraging its diversified solution-based products and services, and strengthening relationships with customers. The Company is committed to explore opportunities for both organic and inorganic growth, in line with its brand promise of Cultivating Growth.

 

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