Philip Morris turns around with Rs96m profit

August 23, 2024 (MLN): Philip Morris (Pakistan) Limited (PSX: PMPK) recorded a profit after tax of Rs96.25 million [EPS: Rs1.56] in the second quarter of 2024 despite a plunge in gross margins.

That compares with a loss of Rs7.84m [LPS: Rs0.13] incurred during the same period last year.

Going by the results, the company's top line grew 33.1% to Rs4.31 billion as compared to Rs3.24bn in the same period last year (SPLY).

However, the cost of sales also surged by 78.8% worsening the gross profit by 60.3% to Rs423.4m in Q2 2024.

The gross margins plummeted to 9.8% as compared to 32.9% in SPLY.

During the period under review, other income jumped  256.8% to stand at Rs2.19bn in Q2 2024 as compared to Rs614.58m in SPLY.

On the expense side, the company's administrative expenses rose 13.5% YoY to Rs509.32m, selling and distribution expenses rose 76.3% YoY to Rs1.57bn, and other operating expenses rose 3.6% YoY to Rs95.19m.

The company’s finance cost expanded by 192.0% and stood at Rs50.9m as compared to Rs17.43m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs297.87m against the Rs240.57m paid in the corresponding period of last year, depicting an increase of 23.8%.

Amount in thousand except for EPS

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