April 30, 2024 (MLN): The Organic Meat Company Limited (PSX: TOMCL) recorded a decrease of 65.7% YoY in its earnings for the quarter ended March 31, 2024 (Q1 2024), with the company's after-tax profits clocking in at Rs155.92 million [EPS: Rs1.05], compared to a profit of Rs454.46m [EPS: Rs3.06] in the same period last year (SPLY).
The profit and loss statement shows that the company's sales went up by 2.05x YoY to Rs3.33bn as compared to Rs1.63bn in SPLY.
The growth in sales successfully outpaced the rise in costs to sell, which improved the gross profit by 85.6% YoY to Rs424.22m in Q1 2024.
Accordingly, the gross margins worsened to 12.72% as compared to 14.03% in SPLY.
On the expense side, the company's administrative expenses rose 19.6% YoY to Rs36.49m, while selling and distribution expenses registered a rise of 81.3% YoY to Rs178.65m.
The company faced widening problems as its other income contracted by 92.7% YoY to stand at Rs31.09m during the review period compared to Rs425.73m in the same period last year.
The company’s finance cost also expanded by 4.5% YoY and stood at Rs52.92m as compared to Rs50.66m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs29.8m against the Rs15.31m paid in the corresponding period of last year, depicting an increase of 94.7% YoY.
In summary, TOMCL's performance during the quarter was impacted by rising expenses, which outweighed its higher revenue base, with other income also declining.
| Unconsolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar 24 | Mar 23 | % Change | |
| Sales | 3,333,914 | 1,628,955 | 104.67% |
| Cost of sales | (2,909,697) | (1,400,422) | 107.77% |
| Gross Profit/ (loss) | 424,217 | 228,534 | 85.63% |
| Administrative Expenses | (36,487) | (30,518) | 19.56% |
| Selling And Distribution Expenses | (178,645) | (98,524) | 81.32% |
| Allowance for doubtful debts | (1,545) | (4,827) | -67.99% |
| Reversal of financial liabilities | 0 | 34 | -100.00% |
| Other Income | 31,094 | 425,731 | -92.70% |
| Finance Cost | (52,917) | (50,661) | 4.45% |
| Profit/ (loss) before taxation | 185,717 | 469,770 | -60.47% |
| Taxation | (29,798) | (15,305) | 94.70% |
| Net profit/ (loss) for the period | 155,918 | 454,465 | -65.69% |
| Basic earnings/ (loss) per share | 1.05 | 3.06 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-30T16:51:33+05:00
