KARACHI: Despite declining margins, National Foods increased its net earnings by nearly a tenth to more than Rs300 million during the quarter ended September 30, 2015, according to an official notification sent to the Karachi Stock Exchange on Wednesday.
One of the country’s largest producer of spices and pickles, the company reported an after-tax profit of Rs312 million or Rs2.99 per share during the period, up 9% compared to Rs286 million or Rs2.74 per share during July-September quarter of 2014. However, the company’s unconsolidated results show the profits declined by 1% to Rs296 million or Rs2.86 per share during the latest quarter compared to Rs299 million or Rs2.89 per share of the same quarter of last year.
National Foods traded at Rs347.54 per share the previous day and declined Rs6.74 to settle at Rs340.8 per share at the close of market on Wednesday with 13,300 shares changing hands – an indication the result was below expectations.
The company’s revenues increased by 14% to Rs3.5 billion in July-September compared to Rs3 billion it grossed in the corresponding period of 2014. Its impact, however, was offset by cost of sales, which increased by 15% to Rs2.2 billion during the same period. The local foods giant also saw its gross margins shrink from 38% as in July-September quarter of 2014 to 37.4% in the same quarter of 2015.
Published in The Express Tribune, October 22nd, 2015.
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