KARACHI: Matco Foods Limited announces the Company’s financial results for the quarter and six months ended December 31, 2017.Matco is actively pursuing new avenues for growth and development including new product developments and expansion of rice glucose project.
Consolidated net turnover for the half year at Rs2.649 billion as compared with Rs2.841 billion of the same period of the last year (SPLY). The company’s gross profit margin was higher by 4.60 per cent i.e. for the period 17.95 per cent as compared with 13.36 per cent of SPLY and net profit margin was higher by 2.45 per cent i.e. for the period 5.05 per cent as compared with 2.60 per cent of SPLY mainly due to good export prices in international rice market.
Earnings per share (EPS) for the six-month period was recorded at Rs1.53 as compared with 0.84 of SPLY. Subsequently, an interim cash dividend at the rate of 3 per cent i.e. Rs0.30 per share of Rs10 was declared by the Board of Directors.
During the period, Company started commercial production of Rice Glucose having an annual capacity of 10,000 metric tonnes of glucose and 1,000 metric tonnes of protein and shipped the first export order in January 2018.
The Company undertook successful Initial Public Offering (IPO) of 29.143 million ordinary shares in February 2018 at a strike price of Rs26. The company plans to utilise the Initial Public Offering proceeds for expansion of its rice glucose production facilities by installing unit of additional 20,000 metric tonne glucose and 2,000 metric ton of protein
The total production capacity of rice glucose and rice protein will be 30,000 metric tonne and 3,000 metric tonnes per annum respectively, after expansion.
Matco has laid the foundation for long-term sustainable operating results and will focus on operational efficiency by improved production techniques, diversification in other high margin FMCG products, efficient energy alternatives, cost reduction initiatives and strengthening relationships with customers, suppliers and investors.