Packages Limited (PSX: PKGS) posted its FY16 yesterday which saw a splendid increase in the company's bottomline on the back of decent growth in revenue. PKGS witnessed an 11 percent increase in its net sales for FY16 as compared to the previous year on a consolidated basis. Almost this entire surge came from rising local sales whereas export sales failed to make a mark during the year and registered negligible change as compared to FY15. The increased revenue along with better working capital cycle, lower fuel and energy costs and operational efficiencies contributed to a 14 percent rise in gross profit as compared to the previous year.
The companys distribution and marketing costs picked up by 37 percent whereas other income saw an increase of almost half as compared to FY15. Resultantly, the company managed to post an adequate 5 percent growth in profit from operation in FY16. Packages Limited almost doubled its finance cost on a year-on-year basis which can be mostly attributed to redemption premium of Rs. 910 million arising from the redemption of 8.5 million preference shares of International Finance Corporation.
Packages Limited also witnessed it investment income rising by more than double due to improved performance of group companies a such as DIC Pakistan Limited and Packages Lanka (Private) Limited. The cumulative effect was a whopping 58 percent increase in the companys bottomline which translated into a basic EPS of Rs57.5 up 53 percent on a year-on-year basis. The company announced an increased final cash dividend of Rs25 per share compared to Rs15 per share last year.
The gross margin of the company saw a marginal increase but the net margin rose almost 6 percent in FY16. Package Limited is also set for its mall opening in 1QFY17 and the coming year is poised to be an interesting one for the company.
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