March 01, 2024 (MLN): The Searle Company Limited (PSX: SEARL) reported its profit and loss statement for the six months ended December 31, 2023, wherein the profit after tax shrank to Rs8.52 million [EPS: Rs0.03] compared to a profit of Rs706.15m [EPS: Rs1.6] in the same period last year (SPLY).
This represents a staggering 99% year-on-year decline in profits.
Going by the consolidated results, the company's top line rose by 19.2% YoY to Rs20.09bn as compared to Rs16.86bn in SPLY.
The cost of sales rose by 26.7% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 8.8% YoY to Rs7.72bn in 1HFY24.
The gross margins, however, worsened to 38.46% as compared to 42.13% in SPLY.
During the review period, other income rose 10.8% YoY to stand at Rs139.28m in 1HFY24 as compared to Rs125.74m in SPLY.
On the expense side, the company observed a rise in distribution costs by 23.3% YoY while reducing its other operating expenses by 55.7% YoY to clock in at Rs4.41bn and Rs43.55m respectively during the review period.
The company’s finance cost inflated by 28.7% YoY and stood at Rs2.15bn as compared to Rs1.67bn in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs344.79m against the Rs451.36m paid in the corresponding period of last year, depicting a fall of 23.6% YoY.
| Consolidated (un-audited) Financial Results for half year ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales – Net | 20,085,288 | 16,855,914 | 19.16% |
| Cost of sales | (12,360,663) | (9,754,704) | 26.71% |
| Gross Profit / (Loss) | 7,724,625 | 7,101,210 | 8.78% |
| Distribution costs | (4,406,273) | (3,573,639) | 23.30% |
| Administrative expenses | (906,048) | (723,166) | 25.29% |
| Other Income | 139,284 | 125,744 | 10.77% |
| Other Expenses | (43,550) | (98,388) | -55.74% |
| Finance Cost | (2,154,722) | (1,674,251) | 28.70% |
| Profit before taxation | 353,316 | 1,157,510 | -69.48% |
| Taxation | (344,792) | (451,358) | -23.61% |
| Net profit / (loss) for the period | 8,524 | 706,152 | -98.79% |
| Basic earnings/ (loss) per share | 0.03 | 1.60 | – |
Amount in thousand except for EPS
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Posted on: 2024-03-01T10:06:04+05:00
