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

MG News | October 07, 2024 at 03:48 PM GMT+05:00

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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.

Unconsolidated (un-audited) Financial Results for year ended June 30, 2024 (Rupees in '000)
	Jun 24	Jun 23	% Change
Sales	25,827,210	21,641,282	19.34%
Cost of sales	(13,270,821)	(12,097,595)	9.70%
Gross Profit/ (loss)	12,556,389	9,543,687	31.57%
Administrative Expenses	(1,468,047)	(1,234,072)	18.96%
Distribution cost	(7,126,326)	(5,474,092)	30.18%
impairment loss on investment in subsidiary	(5,200,000)	-	-%
Other Income	356,759	987,731	-63.88%
Other Operating Expenses	(29,386)	(65,315)	-55.01%
Finance Cost	(3,560,883)	(3,348,104)	6.36%
Profit/ (loss) before taxation	(4,471,494)	409,835	-%
Final tax / levies	1,140,635	(107,698)	-%
Net profit/ (loss) for the period	(3,330,859)	302,137	-%
Basic earnings/ (loss) per share	(6.95)	0.75	-

Amount in thousand except for EPS

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