Haleon shines bright in third quarter, rewards shareholders

October 24, 2024 (MLN): Haleon Pakistan Limited (PSX: HALEON) experienced a 323.1% rise in its quarterly earnings, reporting a profit after tax of Rs1.33 billion [EPS: Rs11.36], compared to a profit of Rs314.29m [EPS: Rs2.68] in the same period last year (SPLY).

Driven by the massive surge in profits, the board of directors of HALEON has announced an interim cash dividend of Rs5 per share i.e. 50%.

As we review the results, it's important to note that the company achieved a strong close this quarter due to improved sales, lower costs to sell, and enhanced other income.

Going by the results, the company's top line grew by 21.1% to Rs9.75bn as compared to Rs8.05bn in SPLY.

On the other hand, the cost of sales fell by 5.9%, and along with positive sales growth, this boosted gross profit by 130% to Rs3.68 billion in Q3 CY24.

The gross margins improved to 37.8% as compared to 19.9% in SPLY.

During the period under review, other income marked an increase of 222.6% to stand at Rs347.45m in Q3 CY24 as compared to Rs107.69m in SPLY.

On the expense side, the company's administration expenses rose 55.6% YoY to Rs203.23m, distribution and selling expenses rose 21.9% YoY to Rs1.3bn, and other operating expenses rose 325.6% YoY to Rs189.99m.

HALEON further reported net finance costs of Rs96.94m as compared to the Rs50.94m finance income in the same quarter last year.

On the tax front, the company paid a higher tax worth Rs909.03m against the Rs203.37m paid in the corresponding period of last year, depicting a rise of 347%.

Amount in thousand except for EPS

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