Merit Packaging’s losses narrow slightly as sales rise

February 29, 2024 (MLN): Merit Packaging Limited (PSX: MERIT) reported a slightly smaller loss in the first half of fiscal year 2024 as sales increased and gross margins improved.

The company posted a net loss of Rs61.35 million [LPS: Rs0.31] in the six months ended December 31, compared with a loss of Rs63.07m [LPS: Rs0.32] a year earlier, according to the company filing on the Pakistan Stock Exchange website.

Revenue rose 17.4% YoY to Rs3.54bn, while cost of sales increased 17.2% to Rs3.26bn.

Gross profit climbed 20.3% YoY to Rs287.3m, boosting the gross margin to 8.1% from 7.9%.

During the period under review, other income fell by 26.9% YoY to stand at Rs9.14m in 1HFY24 as compared to Rs12.5m in SPLY.

On the expense side, the company observed an increase in general and administrative expenses by 32.2% YoY and other expenses by 11.5% YoY to clock in at Rs68.01m and Rs5.44m respectively during the review period.

The company’s financial charges rose by 30.8% YoY and stood at Rs215.27m as compared to Rs164.62m in SPLY.

On the tax front, the company paid a lower tax worth Rs24.05m against the Rs45.07m paid in the corresponding period of last year, depicting a fall of 46.6% YoY.

Amount in thousand except for EPS

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