As per the financial earnings’ results for the year ended on June 30 2018, National Foods Limited gained 5.5 per cent in annual profits, saved by a substantial tax reduction.
The company conducted its Board of Directors meeting on September 6 2018 in which the earnings for the above mentioned period were reviewed and a year-on-year comparison was drawn.
According to the reports issued to PSX, the company’s sales went up by 28 per cent during the year, whereas Gross Profits increased by 23 per cent.
However, since all the expenses grew, including distribution cost which went up from Rs3.5 billion to Rs4.2 billion year-on-year (YoY), profits before taxation dropped by 11 per cent.
Luckily for National Foods, net tax provisions were reduced by 57 per cent this year, resulting in 5.5 per cent increment in bottom-line profits as they increased from Rs973.3 million during the year ended June 30 2017, to Rs1 billion during the last year ended.
The company’s basic and diluted earnings per share increased from Rs9.2 per share to Rs9.74 per share, YoY.
Apart from this, the board recommended a final cash dividend at Rs3.75 per share, i.e. 75 per cent.
