Jawad Ahmed

Dynea Pakistan Limited reported net sales of Rs9.53 billion in the fiscal year 2021-22, posting a 39.68% growth over Rs6.82 billion the previous fiscal, according to WealthPK.

The company was established in Pakistan as a public-limited entity on June 20,1982. It produces and sells formaldehyde, urea/melamine formaldehyde, and moulding compound.

Although the company's top line rose during the period under review, profitability decreased as a result of growing sales costs and higher input prices. The profit-before-tax fell by 24% to Rs1.01 billion in FY22 from Rs1.32 billion in FY21. The net profit for the year was Rs621 million after statutory tax adjustments, down from Rs939 million in FY21, representing a fall of 33.87% year-over-year. As a result, the EPS also declined from Rs49.73 in FY21 to Rs32.93 in FY22.

Company’s performance over the years

In 2019, the company’s net sales increased 33.51% to Rs5.14 billion from Rs3.85 billion in the preceding year.

However, the net profitability decreased to Rs227 million from Rs295 million in 2018 due to increase in input costs and taxes, which dragged the earning per share (EPS) down to Rs12.02 from the earlier Rs15.63.

In 2020, the company’s sales declined to Rs4.49 billion as opposed to Rs5.14 billion in 2019. This was mostly caused by the Covid-19-induced restrictions, which closed markets and disrupted the supply chain.

But the company reported an 11.4% increase in net profit during the year, which stood at Rs253 million, up from Rs227 billion the previous year. As a result, the EPS reached Rs13.42 in 2020 as against Rs12.02 in the previous year.

However, in 2021, the company experienced a spectacular increase in its turnover, which rose by 52% to Rs6.82 billion from Rs4.49 billion the year before.

The profit-after-tax improved from Rs253 million the previous year to Rs939 million during the year under review. Due to gains in profit, the EPS edged up to Rs49.73 from Rs13.42 the year before.

Recent results and future outlook

In fiscal year 2021-22, the company’s revenue rose by more than 48% thanks to growing demand on the back of economic upswing following the removal of Covid-19-related restrictions.

The company's profitability, however, declined as a result of growing input costs.

Even though the economy has improved since the Covid-19, the overall upheaval in the country will continue to have an impact on its operations for the foreseeable future.

According to the company's financial report, it is confident its management team, manufacturing workers and the continued success of the client companies will enable it to meet its sales goals for the upcoming year.

Credit : Independent News Pakistan-WealthPk