ICI Pakistan announces financial results with 16pc growth

KARACHI: The Board of Directors of ICI Pakistan Ltd Wednesday announced unconsolidated Profit after Tax (PAT) for the quarter at Rs1,002 million is 16 per cent higher than the same period last year (SPLY), driven mainly by strong operating performance.

ICI Pakistan Limited continues to show steady financial results in line with the company’s aspirations and objectives. During the nine-month period under review, the company achieved a PAT of Rs2,465 million which is 3 per cent higher than the SPLY, mainly due to a higher operating profit, which was largely offset by higher exchange losses due to the rupee devaluation and lower dividend income from associate as compared to the SPLY. Earnings per share (EPS) for the quarter at Rs10.85 is 16 per cent higher than the SPLY, and during the nine month period under review, EPS at Rs26.69 is 3 per cent higher as compared to the SPLY.

Net turnover for the quarter at Rs12,956 million is 22 per cent higher than the SPLY, due to higher revenues across all businesses except the Chemicals and Agri Sciences business. The operating result for the quarter, at Rs1,360 million, is higher by 28 per cent, as compared to the SPLY, owing to improved performance in the Polyester, Soda Ash, and Life Sciences Businesses.

The net turnover for the nine months at Rs36,133 million translates to a 19 per cent increase compared to the SPLY, with all businesses exhibiting a positive trend. The Life Sciences and Polyester businesses were major contributors, achieving growth of 36 per cent and 23 per cent respectively. In the Chemicals and AgriSciences business, improved performance in the Chemicals Division delivered a growth of 23 per cent in net turnover, while the Soda Ash business’s net turnover grew by 11 per cent over the SPLY due to higher selling prices and sales volume in the domestic market.The operating result for the nine months at Rs3,418 million is 14 per cent higher in comparison to the SPLY, due to improved performances in the Polyester and Life Sciences businesses.The performance achieved by the Polyester business is attributable to better sales volumes and margins along with operational efficiencies. In the Life Sciences business, both Pharmaceuticals and Animal Health Divisions posted double-digit growth.

In February, the company announced the successful commissioning and commencement of operations of phase 1 of its 150,000 tons per annum (TPA) soda ash expansion project, at its manufacturing facility in Khewra. Subsequent to the addition of this 75,000 TPA expansion in phase 1, the nameplate capacity of the Soda Ash plant now stands at 425,000 TPA. This capacity enhancement is a significant step for ICI Pakistan Limited as it stands to further strengthen the company’s status as a national and regional player in the soda ash market.

Additionally, the Masterbatch manufacturing project is progressing as per plan. This project is another strategic step towards fulfilling the company’s growth aspirations and enhancing its chemicals product portfolio.

Going forward, the company is focused on maintaining a positive trajectory while strengthening relationships with existing customers and partners, employing cost reduction initiatives, continuing to embrace innovation, and exploring opportunities for both organic and inorganic growth, in line with its brand promise of ‘cultivating growth’.