Searle reports 11.8% drop in revenue, profit down 7.4% in Q3

October 30, 2024 (MLN): The Searle Company Limited (PSX: SEARL) experienced a fall of 7.4% YoY in its quarterly earnings, with its profit after tax falling to Rs300.78 million [EPS: Rs0.59].

Going by the results, the company's top line went down by 11.8% to Rs6.68bn as compared to Rs7.57bn in SPLY.

The cost of sales fell by 10.4%, but since the decline in sales was larger, gross profit worsened by 13.4%, dropping to Rs3.06bn in Q3 CY24.

SEARL took an additional hit as its other income dipped 34.9%, standing at Rs36.11m in Q3 CY24 compared to Rs55.48m in the SPLY.

On the expense side, the company's administration expenses fell 15.0% YoY to Rs339.97m and distribution and selling expenses dropped 8.9% YoY to Rs1.53bn.

Moreover, other operating expenses also narrowed 4.7% YoY to Rs38.12m.

The company’s finance cost fell by 26.4% and stood at Rs741.19m as compared to Rs1.01bn in SPLY.

A favorable reduction in operating expenses and finance costs helped mitigate the negative impact of declining sales.

On the tax front, the company paid a higher tax worth Rs148.05m against the Rs138.32m paid in the corresponding period of last year, depicting an increase of 7.0%.

Amount in thousand except for EPS

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