Qudsia Bano

Berger Paints Pakistan Limited, a leading paint manufacturing company, reported marginal growth in revenue and gross profit in the first six months of the ongoing financial year 2022-23 compared to the same period of the previous year. The company’s revenue increased 4% from Rs3.53 billion in 6MFY22 to Rs3.65 billion in 6MFY23, while its gross profit increased by 7% from Rs644.7 million in 6MFY22 to Rs689.4 million in 6MFY23, reports WealthPK.

However, the company's profit-before-tax decreased by 33%, from Rs166.7 million in 6MFY22 to Rs111.9 million in 6MFY23, which indicates the company incurred higher expenses or faced other financial challenges during the period. Moreover, the company's net profit decreased significantly by 45%, from Rs136.67 million in 6MFY22 to Rs75.6 million in 6MFY23, which is a cause of concern for the company and its stakeholders.

Performance in 2021-22

Berger Paints Pakistan Limited reported healthy growth in revenue and gross profit in 2021-22 compared to the previous year. The company's total revenue for the year ended June 30, 2022 stood at Rs7.1 billion, up 26% from the previous year's Rs5.6 billion.

The gross profit for the same period was reported to be Rs1.2 billion, showing an increase of 9% over Rs1.1 billion the previous year. Despite the revenue growth, the company's profit-before-tax decreased 7% from Rs267 million in FY21 to Rs247 million in FY22. However, the company’s net profit increased slightly by 3% from Rs195 million the previous year to Rs201.8 million in FY22. The earnings per share also increased by 3% from Rs9.54 in FY21 to Rs9.87 in FY22.

About the company

Berger Paints was incorporated in Pakistan on March 25, 1950 as a private limited company under the Companies Act, 1913 (now Companies Act, 2017). It was subsequently converted into a public limited company. The principal business activity of the company is the manufacturing and trading of paints, varnishes, and other related items. Slotrapid Limited, based in the British Virgin Islands, is the holding company of Berger Paints.

Credit: Independent News Pakistan-WealthPk