PREMA's profit plummets by 83% YoY in Q12024

April 29, 2024 (MLN): At-Tahur Limited (PSX: PREMA) experienced a massive drop of 83.18% YoY in its profitablity for the quarter ended March 31, 2024 (Q12024) , clocking in its profit after tax at Rs130.88 million [EPS: Rs0.6], compared to a profit of Rs778.35m [EPS: Rs3.56] in the same quarter last year.

Going by the results, the company's top line slid by 13.7% YoY to Rs2.71 billion as compared to Rs3.14bn in SPLY.

The drop in company's revenue after gains is attributed to PREMA's gain arisng from changes in fair value less cost to sell dairy livestock, reducing to Rs191.67m, from Rs896.62m in Q12023.

On the other hand, the cost of sales rose by 8.3% YoY, which worsened the gross profit by 49.3% YoY to Rs610m in Q12024.

Accordingly, the gross margins worsened to 22.53% as compared to 38.29% in SPLY.

On the expense side, the company observed a rise in Administrative Expenses by 20.3% YoY and other expenses by 1.2% YoY to clock in at Rs85.96m and Rs166.53m respectively during the review period.

Likewise, the Selling And Distribution Expenses also ticked up and were recorded at Rs141.59m during the quarter under review, up by around 8% YoY.

The profit and loss statement further displays that other income inched to Rs11.68m in Q12024 as compared to Rs11.57m in SPLY.

Further worseing the company profit situatio tjhios quarter,  finance cost grew by 41% YoY and stood at Rs66.58m as compared to Rs47.22m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs30.13m against the Rs16.98m paid in the corresponding period of last year, depicting a rise of 77.5% YoY.

Amount in thousand except for EPS

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