AkzoNobel Pakistan Limited (PSX: AKZO) reported its annual result for FY16 yesterday, which saw a 9 percent dip in the companys bottomline. However, the company managed to increase its net sales by 4 percent on a year-on-year basis with the gross profit also rising by 8 percent due to a better sales mix. The companys selling and distribution expenses picked up by 13 percent as compared to FY15, which could be attributable to increased marketing due to new product launches.
The finance cost also increased by more than half for FY15 and other income saw a decline. The 26 percent fall in other income during the year as compared to the previous period could be seen as the item dragging down the bottomline the most. Resultantly, AkzoNobel posted a decline in profit after tax by 9 percent as compared to FY15 which translated into an EPS of Rs10.6 for FY16.
The companys gross margins witnessed an increase of 150 bps while its net margin fell almost 140 bps as compared to FY15. AkzoNobel announced a final cash dividend of Rs6.5 per share (65%) for FY16.