Philip Morris swings to loss in Q3 as costs soar 157%

October 29, 2024 (MLN): Philip Morris (Pakistan) Limited (PSX: PMPK) reported a loss of Rs113.13 million [LPS: Rs1.84] in the third quarter, contrasting with a profit of Rs287.24m [EPS: Rs4.66] in the same period last year.

According to the result, the company posted a loss despite a 64.9% surge in topline revenue to Rs7.55bn.

This was due to a 157.5% increase in the cost of sales, which led to a 59.7% decline in gross profit to Rs786.99 million in Q3 CY24.

The gross margins worsened to 10.4% as compared to 42.6% in SPLY.

During the period under review, other income rose 204.4% to stand at Rs1.65bn in Q3 CY24 as compared to Rs543.22m in SPLY.

On the expense side, the company's administration expenses rose 26.1% YoY to Rs542.83m, and distribution and selling expenses increased 41.4% YoY to Rs1.67bn.

On the other hand, other operating expenses fell 78% YoY to Rs12.38m.

The company’s finance cost skyrocketed by 184.4% and stood at Rs71.87m as compared to Rs25.27m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs257.52m against the Rs517.37m paid in the corresponding period of last year, depicting a fall of 50.2%.

On a nine-month basis, the company's profit fell 36.06% to Rs421.17m compared to Rs658.74m in 9MCY23.

Nonetheless, PMPK's share price surged to its upper limit during intraday trading.

Amount in thousand except for EPS

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