TOMCL profits plunge 31% YoY in FY24

September 30, 2024 (MLN): The Organic Meat Company Limited (PSX: TOMCL) recorded a decrease of 31.13% YoY in its earnings for the year ended June 30, 2024, with the company's after-tax profits clocking in at Rs497.37 million [EPS: Rs3.35], compared to a profit of Rs722.19m [EPS: Rs4.86] in the same period last year (SPLY).

The profit and loss statement shows that the company's sales went up by 85.35% YoY to Rs11.79bn as compared to Rs6.36bn in SPLY.

The growth in sales successfully outpaced the rise in costs to sell, which improved the gross profit by 85.14% YoY to Rs1.57 in 2024.

On the expense side, the company's administrative expenses rose 39% YoY to Rs170.63m, while selling and distribution expenses registered a rise of 41.32% YoY to Rs581.59m.

The company faced widening problems as its other income contracted by 77.13% YoY to stand at Rs154.36m during the review period compared to Rs675m in the same period last year.

The company’s finance cost also expanded by 27.87% YoY and stood at Rs231.48m.

On the tax front, the company paid Rs13.92m during the review period.

"TOMCL has successfully navigated the challenging macroeconomic environment in Pakistan and internationally by focusing on sustainable growth, operational efficiencies, and expanding its presence in the Chinese and CIS markets," the Director's report of the company reads.

The company now has the distinction of being the single largest exporter of frozen cooked beef to China and one of only two companies in Pakistan to have been approved by the Chinese authorities, it informed. 

Despite the tough economic landscape, FY 2024 was a year of resilience and growth for TOMCL.

The company achieved impressive results across its operations, demonstrating its ability to manage costs effectively while expanding market share. The strong financial performance is a reflection of TOMCL's export-oriented strategy, product diversification, and ongoing efforts to optimize its cost base.

These efforts allowed the Company to deliver robust growth in revenue and profitability, despite facing economic challenges with fluctuating energy costs, and continued high inflation putting additional pressure on cost of production and administration.

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