Archroma Pakistan reports 28% increase in sales but suffers Rs104m loss in 2QFY24

January 24, 2024 (MLN): Archroma Pakistan Limited (PSX: ARPL) recorded a loss after tax of Rs104.14 million [LPS: Rs3.01] in the first quarter of FY24 compared to a profit of Rs154.45m [EPS: Rs4.53] in the same period last year (SPLY).

Going by the results, the company's top line expanded by 28.26% YoY to Rs7.23bn as compared to Rs5.64bn in SPLY.

The cost of sales rose by 30.39% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 19.81% YoY to Rs1.36bn in 2QFY24.

During the review period, other income inflated by more than 4x YoY to stand at Rs28.4m in 2QFY24 as compared to Rs7.04m in SPLY.

On the expense side, the company observed an increase in distribution and marketing expenses by 29.02% YoY while other expenses fell by 87.60% YoY to clock in at Rs830.61m and Rs2.28m respectively during the review period.

The company’s finance costs surged by 3.51x YoY and stood at Rs349.81m as compared to Rs99.58m in 2QFY23, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs79.58m against the Rs55.71m paid in the corresponding period of last year, depicting a rise of 42.84% YoY.

Amount in thousand except for EPS

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