PREMA reports 38% surge in 1HFY25 profit to Rs146mn

February 27, 2025 (MLN): At-Tahur Limited (PSX: PREMA) has reported a significant 38% increase in its profit after taxation for the half-year ended December 31, 2024, reaching Rs146 million compared to Rs105mn in the same period last year.

The company’s earnings per share (EPS) also rose to Rs0.74 from Rs0.48, reflecting a strong financial performance despite a decline in revenue.

The company’s revenue from contracts with customers stood at Rs2.6 billion, down 6.4% from Rs2.7bn in the corresponding period of 2023.

Additionally, the gain arising from the initial recognition of milk at fair value less costs to sell at the time of milking dropped by 6% to Rs1.7bn.

However, At-Tahur Limited benefited from a 12.3% increase in gains arising from changes in fair value of dairy livestock, amounting to Rs551.5mn.

Despite a 4.6% reduction in operating costs, administrative and general expenses surged by 17.4% to Rs181mn, while selling and marketing expenses remained relatively stable with a 1% increase to Rs301mn.

Other expenses saw a slight uptick of 0.65% to Rs. 377mn.

A key contributor to the company’s improved profitability was a substantial 268% rise in other income, which stood at Rs. 36.4mn compared to Rs10mn in the previous year.

Additionally, finance costs were reduced by 33.7% to Rs100mn, further bolstering the bottom line.

The company’s profit before taxation saw a notable increase of 34% to Rs162mn, supported by a 53.4% reduction in levy expenses.

Taxation for the period amounted to Rs16mn, resulting in an overall net profit of Rs146mn.

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