ICI Pakistan announces results for quarter ending on Sept 30

KARACHI: Following the meeting of its Board of Directors, the ICI Pakistan Limited announced its financial results for the quarter ended September 30, 2022.

During the quarter under review, the company entered into a Share Purchase Agreement with Morinaga Milk Industry Co. Ltd Japan (Morinaga Milk) for a partial divestment of approximately 26.5 percent of the issued and paid up share capital of Nutrico Morinaga (Private) Limited (NMPL). The implementation of the SPA is subject to receipt of requisite approvals in addition to fulfilment of closing conditions.

The company will continue to hold approximately 24.5 percent of the share capital of NMPL upon the completion of the proposed transaction. Accordingly, as per IFRS 5 – non-current assets held for sale and discontinued operations, the same has been classified as discontinued operations in the financial statements for the first quarter ended September 30, 2022.

On a consolidated basis (including the result of the company’s subsidiary ICI Pakistan PowerGen Limited), net turnover for the quarter from continuing operations under review at Rs 24,296 million is higher by 13 percent over the same period last year (SPLY).

The consolidated Operating Result from continuing operations at Rs 3,135 million is higher by 2 percent in comparison to the SPLY. Including the impact of discontinued operations, net turnover and operating result for the quarter would have been 30 percent and 21 percent above the SPLY respectively.

For the quarter under review, the consolidated profit after tax (PAT) for the quarter under review for both continuing and discontinued operations at Rs 1,940 million is 48 percent lower than the SPLY whereas EPS attributable to the owners of the holding company for both continuing and discontinued operations at Rs 19.49 is 50 percent lower than the SPLY. The decline is mainly due to a one-off net positive impact of Rs 1,847 million recorded in the SPLY as a consequence of the remeasurement of the previously held equity interest of NutriCo Pakistan (Private) Limited on the acquisition of an additional 11 percent shareholding.

On a standalone basis, the company delivered PAT and EPS at Rs 1,916 million and Rs 20.74 respectively, which is 24 percent higher compared to the SPLY. The growth delivered by the company was facilitated by operational efficiencies across all businesses and the company’s Soda Ash business delivering additional volumes following the successful commissioning of the 75KTPA Light Ash expansion project at its Khewra plant.

Following the announcement of the results for the quarter, ICI Pakistan Limited’s Chief Executive Asif Jooma said, “Despite multiple macroeconomic challenges, the company remains committed to delivering growth, and maintaining a focus on customer needs and operational efficiencies.”

Copyright Business Recorder, 2022