Packages Limited (PKGS) reported a significant profit increase in 2023, with a year-over-year growth of 50.28%, reaching a net profit of Rs10.49 billion, up from Rs6.98 billion the previous year.
The company’s earnings per share (EPS) also rose from Rs77.49 to Rs103.8.
In the light of these financial results, the Board of Directors has announced a final cash dividend of Rs27.50 per share for ordinary shareholders.
The company’s revenue witnessed a notable rise of 28.78% to Rs156.97 billion compared to Rs121.89 billion in the same period last year.
Despite a 24.34% increase in the cost of sales, which amounted to Rs120.05 billion, the company’s gross profit surged by 45.67% to Rs36.92 billion. This improvement also led to an increase in gross margin to 23.52% from 20.79%.
Operational expenses saw an uptick, with distribution expenses growing by 50.82% to Rs7.01 billion, and administrative costs by 29.77% to Rs5.15 billion. Other expenses rose to Rs2.97 billion, marking a 13.21% increase.
The company also recorded a 29.93% year-over-year rise in net impairment losses on financial assets, totaling Rs289.18 million.
Investment income and profits from associates and joint ventures contributed Rs997.77 million and Rs289.18 million, respectively, to the company’s profits.
However, finance costs saw a substantial increase of 86.46% due to higher interest rates, reaching Rs13.53 billion.
Tax expenses for the year were slightly higher at Rs5 billion, compared to Rs4.93 billion in the previous year.
The overall profit includes earnings from both continuing and discontinued operations, which stood at Rs10.39 billion and Rs96.28 million, respectively.
