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%.
| Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Sales | 4,308,023 | 3,237,719 | 33.06% |
| Cost of sales | (3,884,628) | (2,172,426) | 78.82% |
| Gross Profit/ (loss) | 423,395 | 1,065,293 | -60.26% |
| Administrative Expenses | (509,318) | (448,854) | 13.47% |
| Selling And Distribution Expenses | (1,566,869) | (888,976) | 76.26% |
| Other Income | 2,193,005 | 614,582 | 256.83% |
| Other Operating Expenses | (95,191) | (91,882) | 3.60% |
| Finance Cost | (50,896) | (17,432) | 191.97% |
| Profit/ (loss) before taxation | 394,126 | 232,731 | 69.35% |
| Taxation | (297,873) | (240,572) | 23.82% |
| Net profit/ (loss) for the period | 96,253 | (7,841) | – |
| Basic earnings/ (loss) per share | 1.56 | (0.13) | – |
Amount in thousand except for EPS
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Posted on: 2024-08-23T10:14:03+05:00
