Agritech suffers Rs1.06bn loss in three months

August 16, 2024 (MLN): Agritech Limited (PSX: AGL) recorded an increase of 11.6% YoY in its losses during the second quarter of 2024 amid a decline in its gross margins coupled with higher expense costs.

The company suffered a loss after tax of Rs1.06 billion [LPS: Rs2.50], compared to a loss of Rs952.22 million [LPS: Rs2.24] in the same period last year (SPLY).

Going by the results, the company's sales increased by 6.8% to Rs5.07bn as compared to Rs4.74bn in SPLY.

However, the cost of sales also rose by 13.8% YoY, which worsened the gross profit by 22.4% YoY to Rs713.43m in Q2 2024.

The gross margins fell to 14.1% as compared to 19.4% in SPLY.

During the period under review, other income expanded by 580.2% YoY to stand at Rs299.62m in Q2 2024 as compared to Rs44.05m in SPLY.

On the expense side, the company's administrative expenses surged 100.2% YoY to Rs249.77m, selling and distribution expenses rose 4.4% YoY to Rs158.63m, and other operating expenses fell 100.0% YoY to Rs0.07m.

The company’s finance cost rose by 9.3% YoY and stood at Rs1.72bn as compared to Rs1.58bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs56.1m against the Rs105.96m paid in the corresponding period of last year, depicting a decrease of 47.1% YoY.

Amount in thousand except for EPS

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