Increase in COS leads to decline in CPL’s profits

Cherat Packaging Limited (CPL) announced a profit of Rs211 million for the second quarter ended December 31, 2016, down 10% from Rs237 million in the same period of the previous year, according to a company notice sent to Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs7.14 from an EPS of Rs6.34 in the period under review.

Cumulatively, earnings for the first six months (Jul-Dec) touched Rs379 million, down 15% compared with Rs446 million in the same period of the previous year.

“The result is in line with our expectations,” said Zeeshan Afzal of Insight Securities.

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Increment in cost of sales (COS) and other expenses put a major dent in the company’s bottom line, say market analysts.

Cherat Packaging Limited’s share price edged down to Rs328.2, a decrease of 2.6% compared to its last day’s closing price of 337.82.

The company announced a dividend payout of Rs2.50 per share i.e. 25%.

 

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