Karachi, August 20, 2020 (PPI-OT): The Board of Directors of ICI Pakistan Limited is pleased to announce a further capacity expansion of Light Soda Ash at its Khewra Plant by 125,000 tonnes per annum (TPA). This expansion, once completed, will bring the total installed capacity of ICI Pakistan’s Soda Ash Plant to 550,000 TPA. The expansion is yet another development towards the Company’s growth aspirations in line with its brand promise of Cultivating Growth.
Following its Board meeting held on August 20, 2020, the Board announced the financial results for the year ended June 30, 2020.
Financial Highlights
On a consolidated basis (including the results of the Company’s subsidiaries: ICI Pakistan PowerGen Limited, Cirin Pharmaceuticals (Private) Ltd and NutriCo Morinaga (Private) Limited, net turnover for the year under review was PKR 55,256 million, which was a 7% decrease over the SPLY. The economic slowdown and uncertainty induced by COVID-19 pandemic along with consequential country wide lockdown were the primary factors which affected earnings in the later part of the year under review.
Despite lower revenues and economic challenges, the consolidated operating profit for the year at PKR 5,520 million was 12% higher than the SPLY, driven through operational excellence and cost optimisation measures.
On a consolidated basis, PAT for the year was PKR 2,362 million which translates into an EPS of PKR 27.37 being almost in line with the SPLY. On a standalone basis, PAT for the year at PKR 3,029 million and EPS at PKR 32.80 was 31% higher compared to the SPLY, driven through higher operating results coupled with higher dividend income from its Associate.
The Board has approved a final cash dividend in respect of the financial year ended June 30, 2020, at the rate of 50% % i.e. PKR 5/- per share of PKR 10/- each to be payable to the members. This is in addition to the 110% Interim Cash Dividend (i.e. PKR 11/- per share) already paid, as recommended by the Board of Directors.
Business Highlights
During the year under review, the Company made considerable progress on several strategic projects that will help it to deliver improved performance:
The Soda Ash Business expanded its Dense Ash capacity by 70,000 tonnes per annum during the year to cater to increasing market demand.
Promising performance by Pharmaceuticals Business, making ICI Pakistan the second fastest growing organization in the Pharmaceuticals Industry during the period under review.
Successful amalgamation of Cirin Pharmaceuticals (Pvt) Ltd. with ICI Pakistan Ltd. Effective March 1, 2020 which entailed complex Regulatory approvals and HR integration processes. This was completed without any business interruption and with minimal cost.
The construction of a state-of-the-art NutriCo Morinaga manufacturing facility was completed and the plant inaugurated in September 2019. Following the inauguration, commercial production commenced during the second quarter of the year under review with the commercial release of products in January 2020.
Following the announcement of results for the year under review ICI Pakistan Ltd. Chief Executive Mr. Asif Jooma said: “COVID-19 presented a major challenge for domestic and global markets, with far-reaching consequences. Despite economic pressures the Company has been able to deliver results maintaining the growth momentum of its businesses. The Company is confident that it will be able to capitalise on future opportunities. In keeping with this, the Board of Director’s decision to enhance the capacity of the Soda Ash plant reinforces the Company’s commitment to growth for all its stakeholders.”
For more information, contact:
Head Office,
Corporate Communications and Public Affairs Department,
ICI Pakistan Limited
5 West Wharf, Karachi, Pakistan
UAN: +92-21-111-100-200
Tel: +92-21-32313717-22, +92-21-32427012
Email: ccpa.pakistan@ici.com.pk
Website: https://www.ici.com.pk