Merit Packaging’s losses narrow slightly as sales rise

MG News | February 29, 2024 at 09:54 AM GMT+05:00

0:00

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.

Unconsolidated (un-audited) Financial Results for half year ended December 31, 2023 (Rupees in '000)
	Dec 23	Dec 22	% Change
Sales - Net	3,544,769	3,018,931	17.42%
Cost of sales	(3,257,513)	(2,780,137)	17.17%
Gross Profit / (Loss)	287,256	238,794	20.29%
General and administrative expenses	(68,014)	(51,454)	32.18%
Selling and distribution expenses	(44,973)	(48,346)	-6.98%
Other Income	9,143	12,502	-26.87%
Other Expenses	(5,444)	(4,882)	11.51%
Financial Charges	(215,267)	(164,615)	30.77%
Profit before taxation	(37,299)	(18,001)	107.21%
Taxation	(24,050)	(45,073)	-46.64%
Net profit / (loss) for the period	(61,349)	(63,074)	-2.73%
Basic earnings/ (loss) per share	(0.31)	(0.32)	-

Amount in thousand except for EPS

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