BMA Capital Management Limited.
- The Searle Company Limited (SEARL) announced its full year FY15 result today wherein the company reported earnings of PKR1.45bn (EPS: PKR15.99) compared to PKR876mn (EPS: PKR9.34) in full year FY14, a jump of 66%YoY.
- The result announcement also accompanied i) dividend of PKR2.0/sh, ii) bonus of20% and right share issue of 10% @PKR200/sh
- The increase in profitability is attributable to an i) an increase of 18.9%YoY in topline and ii) 406bps improvement in GPM which inched up to ~49% in FY15 from ~45% in FY14.
- Consequently, the company reported gross profit of PKR4.4bn in FY15, an increase of ~30% from the previous year.
- In 4QFY15, the company posted earnings of PKR255mn (EPS: PKR2.05) compared to earnings of PKR427mn (EPS: PKR4.98) in 3QFY15, a decline of 40%QoQ attributable to a decline in gross margins which clocked at
43% compared to 9MFY15 average margins of 51%.
- We currently await clarity on the reason behind the right issue by the company and will update our readers after having a word with management over the same.