SEARL suffers loss of Rs3.3bn in FY24 due to impairment loss

October 07, 2024 (MLN): The Searle Company Limited (PSX: SEARL) suffered a loss of Rs3.33 billion [LPS: Rs6.95] for the year ended June 30, 2024, due to a substantial loss on investment in a subsidiary.

This compares to a profit of Rs302.14m [EPS: Rs0.75] earned in the previous fiscal year.

According to the profit and loss account, the company's top line grew by 19.3% to Rs25.83bn as compared to Rs21.64bn in FY23.

Sales growth outpaced the 9.7% increase in costs, resulting in a 31.6% improvement in gross profit, which reached Rs12.56bn in FY24.

Accordingly, the gross margins improved to 48.6% as compared to 44.1% in SPLY.

During the period under review, other income fell by 63.9% to stand at Rs356.76m in FY24 as compared to Rs987.73m in FY23.

On the expense side, the company's administrative expenses rose 19.0% YoY to Rs1.47bn, while distribution cost spiked 30.2% YoY to Rs7.13bn.

On the other hand, other operating expenses fell 55% YoY to Rs29.39m.

It is noteworthy that SEARL reported a substantial impairment loss of Rs5.2bn on its investment in a subsidiary, which was the sole factor contributing to the weak earnings during this period.

The company’s finance cost soared by 6.4% and stood at Rs3.56bn as compared to Rs3.35bn in SPLY, mainly due to higher interest rates.

On the tax front, the company received a tax credit worth Rs1.14bn against the Rs107.7m paid in the corresponding period of last year.

Amount in thousand except for EPS

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