ICI Pakistan Limited is scheduled to announce its 1QFY23 financial result on Oct 19th

ICI Pakistan Limited (ICI) is scheduled to announce its 1QFY23 financial result on Oct 19th, 2022. We expect the company to post a profit after tax (PAT) of PKR 1,679mn (EPS: PKR 18.18) compared to a profit after tax of PKR 3,602mn (EPS: PKR 39.00) during the same period of last year. The decline in earnings is expected due to absence of a gain on re-measurement of existing interest in NutriCo Pakistan, higher taxation, and higher finance cost.

To recall, ICI has executed a SPA with Morinaga Milk to sell its 21.8mn share of NutriCo Morinaga at USD 2.07/share. If we include the gain (~PKR 7,624mn), the earnings for 1QFY23 will be PKR 73.49/share.

Sales in 1QFY23 are expected to climb by 28% YoY to PKR 27.4bn due to higher sales of the Pharma, Animal Health, and NutriCo Morinaga. Finance cost is expected to increase by 250% YoY | 84% QoQ on the back of higher interest rates along with higher levels of short-term borrowings. The company is expected to book an exchange loss of PKR 354mn due to PKR depreciation.

Courtesy- AHL Research

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