National Foods profit slumps 41% in FY24

September 06, 2024 (MLN): National Foods Limited (PSX: NATF) recorded a profit after tax of Rs1.27 billion [EPS: Rs5.44] in the fiscal year 2023-24, down 41.0% compared to the profit of Rs2.15bn [EPS: Rs9.23] last year.

In the April-June quarter, the company made a profit of Rs281.4 million, up 24% from last year.

Along with the results, the company announced a final cash dividend for the year ending June 2024 of Rs 5 per share i.e. 100%.

This is in addition to the interim dividend already paid at Rs1.5 per share i.e. 15% during the year.

Going by the results, the company's revenue rose 26.3% to Rs37.38bn as compared to Rs29.6bn in SPLY.

The cost of sales also rose by 31.9% but was lesser than proportionate to sales rise, which improved the gross profit by 15.6% to Rs11.84bn in Q4 FY24.

The gross margins, however, fell to 31.7% as compared to 34.6% in SPLY.

During the period under review, other income slipped 63.9% to stand at Rs319.3m in Q4 FY24 as compared to Rs884.47m in SPLY.

On the expense side, the company's administrative expenses rose 34.5% from a year ago to Rs2.57bn, selling and distribution expenses rose 13.6% to Rs6.41bn, and other operating expenses fell 19.5% to Rs223.67m.

The company’s finance cost surged by 152.3% and stood at Rs1.57bn as compared to Rs621.39m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs118.81m against the Rs505.53m paid in the corresponding period of last year, depicting a fall of 76.5%.

This translates to an effective tax rate of 8.6% as compared to 19.0% in SPLY.

Amount in thousand except for EPS

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