August 28, 2024 (MLN): Merit Packaging Limited (PSX: MERIT) reported a loss after tax of Rs186.36 million (LPS: Rs0.93) for the year ended June 30, 2024 (FY24), which is nearly identical to the loss reported in the previous year (FY23).
According to the profit and loss statement, the company's top line rose 4.7% to Rs6.64bn as compared to Rs6.34bn in SPLY.
However, as the cost of sales increased by a greater proportion, MERIT's gross profit worsened by 6.8% to Rs458.11m in FY24.
The expense section shows that administrative expenses increased by 36.4% YoY to Rs148.64m, while selling and distribution expenses rose by 10.7% YoY to Rs96.58m.
In contrast, other operating expenses decreased by 69.1% year-over-year to Rs15.42 million.
During the period under review, other income increased 53.4% to stand at Rs51.09m in FY24 as compared to Rs33.31m in SPLY.
MERIT also incurred a minimum tax differential expense worth Rs83.2m in FY24.
The company’s finance cost rose by 2.2% and stood at Rs351.73m as compared to Rs344.28m in SPLY, mainly due to higher interest rates.
Although the company improved its sales, the increase was not significant enough to offset the higher expenses and finance charges, resulting in a continued loss.
| Unconsolidated (un-audited) Financial Results for the year ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Sales | 6,638,477 | 6,340,624 | 4.70% |
| Cost of services | (6,180,364) | (5,849,026) | 5.66% |
| Gross Profit/ (loss) | 458,113 | 491,597 | -6.81% |
| Administrative Expenses | (148,641) | (109,005) | 36.36% |
| Selling And Distribution Expenses | (96,575) | (87,252) | 10.69% |
| Other Income | 51,089 | 33,312 | 53.36% |
| Other Operating Expenses | (15,416) | (49,903) | -69.11% |
| Finance Cost | (351,728) | (344,285) | 2.16% |
| Minimum tax Differential | (83,203) | (124,376) | |
| Profit/ (loss) before taxation | (186,362) | (189,912) | -1.87% |
| Net profit/ (loss) for the period | (186,362) | (189,912) | -1.87% |
| Basic earnings/ (loss) per share | (0.93) | (0.95) | – |
Amount in thousand except for EPS
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