In FY23, SCL demonstrated strong financial growth, reporting a significant profit of PKR 144.96 million (EPS: PKR 37.17), a substantial increase from the previous year’s PKR 17.76 million (EPS: PKR 4.55).
During this period, the company’s revenue surged remarkably, reaching PKR 4.36 billion, indicating a notable 64% YoY growth from PKR 2.66 billion in the previous year. Simultaneously, the gross profit rose significantly to PKR 1.13 billion, reflecting a commendable 77% increase.
This surge in revenue was attributed to higher product prices and increased volumes. The Company’s gross profit also rose by 77.40% due to substantial price increases.
However, there was a significant 59% increase in the cost of sales, totaling PKR 3.23 billion in FY23, up from PKR 2.02 billion the previous year. Shield Corporation also experienced a rise in finance costs, increasing to PKR 203.13 million from PKR 85.04 million due to higher policy rates and increased use of financing facilities.
Furthermore, the Company expanded its product portfolio by launching new baby toiletries, tapping into a market worth PKR 3 billion. Additionally, two new products, sensitive and herbal toothpaste, were introduced in FY23.
SCL initiated an awareness campaign on World Oral Health Day, reaching 15,840 patients in seven cities in FY23.
Regarding expansion, the Company is exploring export markets in Europe, the Far East, and Africa. While currently exporting a minimal percentage to African countries, SCL anticipates repeat orders this year.
The Company aims to achieve a revenue target of PKR 10 billion in the coming years by diversifying products and expanding into export markets. Furthermore, SCL plans to explore E-Commerce options to boost future sales. However, inflation and higher interest rate will remain Key challenges for the Company.
Important Disclosures
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