ICI Pakistan profits plunge 5pc till Dec 31

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KARACHI: The Board of Directors of ICI Pakistan Limited Wednesday posted an unconsolidated profit after tax of Rs 1.463 billion for the six-month period ending at December 31, 2017, down by 5 per cent the same period last year (SPLY), said a press release.

ICI Pakistan Limited continues to show steady performance, while actively pursuing new avenues for growth and development including capacity expansion projects, new manufacturing facilities and new partnerships.

According to the press release the net turnover for the six month period under review at Rs 23,177 million, increased by 18 per cent compared to the SPLY. The polyester and life sciences businesses were major contributors with a growth of 24 per cent and 32 per cent respectively. Improved performances in the soda ash and chemicals and agri sciences businesses also increased net turnover by 3 per cent and 12 per cent respectively.

It added that the company’s operating result over the six months stood at Rs 2,058 million, higher by 6 per cent compared to the SPLY, mainly due to improved performances in the polyester and life sciences businesses. Unconsolidated profit after tax for the six-month period saw a 5 per cent decline compared to SPLY at Rs 1,463 million. This is mainly due to a higher exchange loss of Rs 238 million caused by the devaluation of the Pakistani rupee, coupled with a lower dividend of Rs 210 million from the company’s subsidiary and associate as compared to the same period last year. Subsequently, earnings per share (EPS) for the six-month period are Rs 15.84.

An interim cash dividend for the year ending June 30, 2018, at the rate of 80 per cent i.e. Rs 8 per share of Rs 10 has been declared by the Board of Directors.

Alongside the sound performance of the ICI businesses for the half year, a number of projects are currently underway, demonstrating the ICI’s growth aspirations.

It revealed that in the soda ash business, phase one of a capacity expansion project is in its final stages. Post commissioning, an additional 75,000 tonnes per annum will be added to the existing capacity of 350,000 tonnes per annum of the soda ash plant.

In the chemicals and agri sciences business, the ongoing project to set up a masterbatch manufacturing facility is also progressing as per plan, said the statement adding that the project will considerably enhance the chemicals and agri sciences business’s product portfolio.

The life sciences business’s animal health division has entered into a partnership with a leading South Korean animal vaccine manufacturer, CAVAC, to import, market and distribute the CAVAC Poultry Biologicals portfolio in Pakistan. This partnership will allow ICI to expand its biologicals portfolio, bringing a new range of products to customers and helping improve poultry health management in Pakistan.

ICI Pakistan Limited also marked another milestone on November 23, 2017, holding the ground-breaking ceremony of the manufacturing facility for NutriCo Morinaga (Private) Limited, ICI’s majority-owned infant formula joint venture. This ceremony marked an exciting new chapter in the joint venture partnership between ICI Pakistan Limited, Morinaga Milk Industry Company Limited, and Unibrands (Pvt) Ltd, who have joined hands to locally manufacture and market international-quality-standard Morinaga infant formula in Pakistan.

These developments are a clear embodiment of ICI Pakistan Limited’s ongoing pursuit of growth, in line with its brand promise of cultivating growth.