Cairo – Mubasher: Paint and Chemicals Industries (Pachin) posted a 77.36% year-on-year profit slide during the first quarter of fiscal year 2019/2020.
Net profits plunged to EGP 3.61 billion in the July-September period, compared to EGP 15.95 million in the corresponding period of 2018, including minority shareholders’ rights, the company said in a filing to the Egyptian Exchange (EGX) on Sunday.
The company generated EGP 222.3 million in sales in the three-month period ended 30 September, up from EGP 208.1 million in the prior-year period.
The profit drop was ascribed to higher costs of feedstock and packaging materials, in addition to the increase in social insurance, wages, as well as fuel and water costs.
As for standalone business, Pachin logged a net profit of EGP 1.06 million in Q1 of FY19/20, down from EGP 1.83 million in the same period a year earlier, while its revenues retreated to EGP 20.25 million from EGP 22.49 million due to lower demand and slowdown in trade activities.
It is noteworthy that during FY18/19, the EGX-listed company reported a net profit of EGP 16.77 million, compared to EGP 93.08 million in FY17/18.
