Agritech rebounds with strong revenue growth, improved margins

March 28, 2024 (MLN): Agritech Limited (PSX: AGL) has made a remarkable turnaround in 2023, earning a profit after tax of Rs1.09 billion [EPS: Rs2.77] compared to a loss of Rs2.95bn [LPS: Rs7.53] in 2022.

Going by the unconsolidated results made available by the company, revenue rose 28.2% YoY to Rs22.17bn as compared to Rs17.3bn in the previous year.

The cost of sales also rose by 17.1% YoY but was lesser than proportionate to sales increase, which improved the gross profit substantially by 2.07x YoY to Rs4.4bn in 2023.

The gross margins improved to 19.84% as compared to 12.27% in 2022.

Moreover, during the review year, other income skyrocketed by 6.88x YoY to Rs722.1m as compared to Rs104.88m in 2022.

On the expense side, the company observed a rise in administrative expenses by 34.4% YoY and other expenses by 68.9% YoY to clock in at Rs646.13m and Rs63.75m respectively during the review period.

The company’s finance cost went up by 42.3% YoY and stood at Rs6.1bn as compared to Rs4.28bn a year earlier, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs238.35m against the Rs262.56m paid in the corresponding period of last year, depicting a fall of 9.2% YoY.

Amount in thousand except for EPS

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