National Foods profit falls 29% as finance costs spike

October 15, 2024 (MLN): National Foods Limited (PSX: NATF) saw its drop nearly 29% for the quarter ended September 30, 2024, with its profit after tax clocking in at Rs589.1 million [EPS: Rs1.16] compared to the bottom line of Rs829.38m [EPS: Rs2.42] in the same period last year (SPLY).

The primary reason for the company reporting lower profits is the surge in finance costs, which increased from Rs466.21 million to Rs753.76m in Q3 CY24

NATF's top line grew by 16.5% to Rs23.25bn as compared to Rs19.95bn in SPLY.

The cost of sales rose by 18.3%, but with revenue growing at a proportionally higher rate, gross profit increased by 11.8% to Rs6.05bn in Q3 CY24.

During the period under review, the company's other income grew 220.1% to stand at Rs128.65m in Q3 CY24 as compared to Rs40.19m in SPLY.

On the expense side, the company's selling and distribution expenses rose 14.4% YoY to Rs3.22bn, while administrative expenses increased 27.8% YoY to Rs1.25bn.

Conversely, NATF's other operating expenses fell 85% YoY to Rs3.62m.

On the tax front, the company paid a higher tax worth Rs336.7m against the Rs316.12m paid in the corresponding period of last year, depicting an increase of 6.5%.

Amount in thousand except for EPS

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