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Bright Packaging 2016 Income Analysis

Bright Packaging Industry's income statement shows that while revenues increased 39.49% from 2015 to 2016, costs of goods sold rose even more at 53.04%, leading to a 63.75% drop in gross profit. Operating expenses remained relatively flat but earnings before interest and taxes plunged over 100% due to the increased costs. However, the company's net income increased 130.81% from 2015 due to a large decrease in tax expenses.

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80 views2 pages

Bright Packaging 2016 Income Analysis

Bright Packaging Industry's income statement shows that while revenues increased 39.49% from 2015 to 2016, costs of goods sold rose even more at 53.04%, leading to a 63.75% drop in gross profit. Operating expenses remained relatively flat but earnings before interest and taxes plunged over 100% due to the increased costs. However, the company's net income increased 130.81% from 2015 due to a large decrease in tax expenses.

Uploaded by

Joanna Jackson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Bright Packaging Industry Berhad Income Statement

RM 2015 2016 Y-o-Y Change


Revenues 44,713,975.00 62,373,708.00 39.49%
COGS 39,526,645.00 60,493,135.00 53.04%
Gross Profit 5,187,330.00 1,880,573.00 -63.75%
Operating Expenses:
selling and distribution 777,966.00 871,509.00 12.02%
administration expenses 2,678,388.00 3,664,432.00 36.81%
Other expenses 1,229,629.00 48,540.00 -96.05%
Total Op Expenses 4,685,983.00 4,584,481.00 -2.17%
Operating Income (Loss) 3,065,739.00 2,540,675.00 -17.13%
Total income 3,065,739.00 2,540,675.00 -17.13%
EBIT 3,567,086.00 -163,233.00 -104.58%
Interest Expense 109,358.00 136,522.00
EBT 3,457,728.00 -299,755.00 -108.67%
Tax expense 2,668,959.00 -2,120,301.00
Net Income 788,769.00 1,820,546.00 130.81%

The income statement of a company is also known as its statement of profit and loss, which

shows the company’s performance during the financial year. By referring to Bright Packaging

Industry’s income statement, it can be observed that the company’s sales revenue has increased

by 39.49%. This could be due to a better marketing strategy or improvement of the service

provided by the company.

However, the EBIT has deceased tremendously, over the year. From a positive figure of RM

3,457,728 in 2015, the EBIT dropped to – RM 163,233 in 2016. This figure is attributable to

the increase of 53.04% in the cost of goods sold. Furthermore, the income from operations has

decreased by 17.13%. These large decreases in value overshadow the increase in sales revenue

and the 2.17% decrease in operating profits.

Despite this, the net income depicts a 130.81% increase. The increase in net income in 2016 is

upended by the decrease in tax expenses. This is shown below:

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