Shield Corporation Ltd (SCL), the Local manufacturer of Baby Care and Oral Care products in Pakistan, posted a rise in Profit backed by increased Demand. SCL posted Net Profit of Rs. 21.4 million in 1Q2020 as compared to Rs. 16.36 million in the same period last year.
The gross margins of the company remained at 31%, while Operating Profit increased to Rs. 59 million as the company cut back on excessive Selling Expenses.
Sales of the company increased by 13% YoY, as it adjusts Prices upward to absorb Cost Pressures.
SCL witnessed a significant decline in its profitability in 2019 where net profit declined by 64% to Rs. 24 million as higher Finance Cost and Taxation eat up the profit. However, with improvement in Selling efficiency, the company is back on Higher Profit Margins as evident from this quarter earnings.