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PREMA’s profits balloon by 5.3x YoY in 1HFY22

February 24, 2022 (MLN): At-Tahur (PSX: PREMA), a pioneer in the pasteurized dairy sector has made remarkable progress throughout its journey and continuing its tradition to give strong valuation, the company posted profits worth Rs410 million (EPS: Rs2.07) during the first half ended on December 31, 2021, up by 5.3x YoY, compared to Rs77.16mn (EPS: Rs0.39) in the same period last year.

The strong business growth of PREMA is supported by the expansion of processing facilities and improving efficiencies for delivering the best nutrition and positive impact on the lives of its consumers.

The top line of the company jumped by 26% to clock in at Rs1.48bn in 1HFY22. In order to grow its sales further, the company has imported 375 Holstein Friesian cows which will add approximately 2.3 million litres per year to the company’s current production of milk.

The company’s current revenue mix comprises 70% from pasteurized milk and the rest being value-added products like laban, chunkies, and butter to improve its scale of business in terms of value-added products, the company is in the process to explore other avenues as there is huge potential for expansion to fulfil the nutritional need of growing population base.

On the cost front, the company witnessed a surge in its distribution and selling expense of 24.45% YoY and 23% YoY to stand at Rs111.2mn and Rs89mn, respectively on the back of increasing sales.

The bottom line of the company has also been supported by the three-fold jump in other income to clock in at Rs4.169mn in the review period.

 Meanwhile, the company also paid Rs23mn in terms of taxation, up by 53% YoY in 1HFY22.

To note, PREMA has been conferred with 'Brand of the Year Award” for two consecutive years i.e. 2019 & 2020 in the Milk & Yogurt category, by the brand foundation FPCCI for setting high benchmarks for quality and customer care, by producing fresh, pure and nourishing products to ensure the well-being of its customers.

Consolidated Financial Results for the half-year ended December 31, 2021 (Rupees)

 

Dec-21

Dec-20

Change

Revenue from contracts with customers

1,480,381,904

1,174,144,376

26.08

Gain arising on initial recognition of milk at milking

955,621,879

696,359,503

37.23

Gains arising from changes in fair value less costs to sell of dairy livestock

550,216,229

205,997,640

167.09

 

2,986,220,012

2,076,501,519

43.81

Operating costs

-2,063,474,788

-1,602,195,146

28.79

 

922,745,224

474,306,373

94.54

Administrative and general expenses

-111,269,986

-89,403,780

24.45

Selling and marketing expenses

-160,828,333

-130,860,683

22.90

Other expenses

-174,484,646

-139,201,620

25.34

 

-446,582,965

-359,466,083

24.23

Other income

4,169,390

1,336,817

211.88

Profit from operations

480,331,649

116,177,107

313.44

Finance cost

-46,736,402

-24,013,393

94.62

Profit before taxation

433,595,247

92,163,714

370.46

Taxation

-23,081,932

-14,996,024

53.92

Profit after taxation

410,513,315

77,167,690

431.97

Earnings per share – basic and diluted

2.07

0.39

430.76

Copyright Mettis Link News

Posted on: 2022-02-24T14:45:18+05:00

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