FEROZ's profit slumps 22% in Q1 FY25

October 28, 2024 (MLN): Ferozsons Laboratories Limited (PSX: FEROZ)’s bottom line in Q1 FY25 contracted by 22.16% YoY to Rs140.5 million [EPS: Rs3.23] as compared to Rs180.5m [EPS: Rs4.15] in the corresponding quarter of FY24.  

The topline of the company has also decreased by 7% YoY to Rs3.35 billion in the review period compared to Rs3.62bn during the same period last year.

Accordingly, the company’s gross profit dropped by 2.28% YoY to Rs1.3bn, with a gross margin improvement as the proportional decrease in cost of sales was greater than the decrease in sales.

However, FEROZ witnessed 7.66% YoY increase in administrative expenses, reaching Rs205.7m, while selling and distribution expenses down by 5.25% YoY to Rs740m.

The profits of the company also hurt by the surging finance cost which was jumped by 99% YoY to Rs158.6m.

On the tax side, the company incurred a minimum tax differential of Rs4.98m, significantly higher (304%) than the Rs0.98m it paid in the same period last year.

In addition, a notable upsurge was seen in the final tax expense, which increased by 801%, amounting to Rs4.8m compared to Rs0.53m in the previous year.

The company’s income tax for the period decreased by 59.54% YoY to Rs49.11m.  

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