Highnoon's profit in Q2 CY24 jumps 28.2%

August 29, 2024 (MLN): Highnoon Laboratories Limited (PSX: HINOON) experienced a rise of 28.2% YoY in its earnings for Q2 CY24, as its profit after tax clocked in at Rs738.33 million [EPS: Rs13.94], compared to a profit of Rs576.12m [EPS: Rs10.87] reported in the same quarter last year.

According to the results, the company's top line grew 9.6% to Rs5.42bn compared to Rs4.94bn in SPLY.

The growth in HINOON's revenue outpaced the rise in the costs to sell (+0.9%), due to which the gross profit increased by 20.4% to Rs2.65bn in Q2 CY24.

Accordingly, the gross margins improved to 48.9% as compared to 44.5% in SPLY.

Further supporting the company's earnings, other income increased by 279.7% to Rs132.75m in Q2 CY24, compared to Rs34.96m in the same period last year.

On the expense side, the company's administrative expenses rose 24.7% YoY to Rs231.23m, selling and distribution expenses rose 30.7% YoY to Rs1.28bn, and other operating costs rose 65.4% YoY to Rs124.92m.

The company’s finance cost inflated by 92% and stood at Rs52.77m as compared to Rs27.48m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs328.04m against the Rs380.06m paid in the corresponding period of last year, depicting a fall of 13.7%.

In addition to this, HINOON incurred a final tax expense worth Rs17.8m during the review quarter.

Amount in thousand except for EPS

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