PABC reported a remarkable 86 % increase in profits

PABC reported a remarkable 86% increase in profits, driven by higher sales and lower taxes.

In 2023, Pakistan Aluminium Beverage Cans Limited (PABC) reported a remarkable increase in its profit after tax, reaching Rs. 5.02 billion compared to Rs. 2.7 billion recorded in 2022, representing a growth of 86%. According to the company, this increase is due to the increase in sales and a reduction in taxes during this period.

The information disclosed in the statement

According to the financial report released to the Pakistan Stock Exchange (PSX) on Friday, the Board of Directors (BoD) agreed to grant an advance cash dividend of Rs. 3.5 per share for the fiscal year 2023 ending December 31. This represents a 35% increase in the value of the shares. In addition, a significant increase in the company’s earnings per share (EPS) for 2023 was recorded, reaching Rs. 13.9 compared to Rs. 7.48 in the same period of the previous year.

During the current year, Pakistan Aluminium Beverage Cans Limited (PABC) saw a significant increase in its sales, achieving Rs. 19.74 billion as compared to Rs. 14.15 billion achieved during the same period last year. This increase represents a considerable growth of more than 39% for the company.

The improvement in PABC’s gross profit was remarkable, rising 62% to R7.65 billion in 2023 from R4.73 billion in the previous year. This resulted in an increase in the company’s profit margin, which reached 38.73% in 2023, compared to 33.4% in 2022.

Other cash inflows

In FY2023, the ‘other income’ category for PABC saw a notable increase, reaching Rs. 460.24 million compared to Rs. 223.05 million in the previous year. This represents a growth of more than 106 percent. However, PABC also faced an increase in its finance costs by 76 percent from Rs. 408.89 million in FY2022 to Rs. 718.63 million in FY2023. In addition, other expenses also increased significantly to Rs. 706.36 million in FY2023, an increase of nearly 32 percent from last year’s Rs. 537.01 million.

Despite a 69 percent increase in profit before tax (PBT) in 2023 to Rs. 5.3 billion, the can maker had to pay a lower amount in taxes, which was Rs. 285.5 million compared to Rs. 428.5 million in the previous year.