October 02, 2023 (MLN): The Organic Meat Company Limited (PSX: TOMCL) reported a remarkable increase in profitability during the fiscal year 2023, with a year-on-year surge of 75.54%.
The company achieved a profit after tax of Rs722.19 million [EPS: Rs5.35], in contrast to the previous fiscal year where it recorded a profit of Rs411.41m [EPS: Rs3.05].
During the year ended June 30, 2023, the company was able to increase the export revenues by 36.35%, on a net basis, whereas export volumes increased by 0.57% and devaluation benefits accrued at 38.56% against US Dollar.
Going by the results, the company's top line surged by 36.66% YoY to Rs6.37bn as compared to Rs4.66bn in SPLY.
The cost of sales also rose by 36.17% YoY as the company's cost of sales increased from Rs646/kg to Rs894.56 /kg in FY23 due to higher procurement costs and higher depreciation charges given the capitalization of fixed assets. 93% of this cost was directly related to procuring meat and offals.
As a result, the gross margin was retained during the current year, while gross profit improved by 0.3%.
Moreover, during the review period, other income went up by 80.26% YoY to stand at Rs675.03m in FY23 as compared to Rs374.47m in SPLY, this was due to foreign exchange gains.
On the expense side, the animal fattening farm and the Korangi factory required more staff and resources, which increased the administrative costs by 39%.
The PKR devaluation also affected the selling expenses, which rose by 41% due to higher freight rates.
The company’s finance costs surged by 2.05x, but they were balanced by lower provisioning on export rebate receivable.
On the tax front, the company paid a higher tax worth Rs66.69m against the Rs43.94m paid in the corresponding period of last year, depicting an increase of 51.77% YoY.
| Unconsolidated (un-audited) Financial Results for year ended 30 June, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | June 22 | % Change | |
| Sales | 6,365,238 | 4,657,774 | 36.66% |
| Cost of sales | (5,512,347) | (4,048,249) | 36.17% |
| Gross Profit | 852,891 | 609,526 | 39.93% |
| Administrative expenses | (122,690) | (88,490) | 38.65% |
| Selling expenses | (411,534) | (292,774) | 40.56% |
| Allowance for doubtful debt | (5,334) | (31,760) | -83.21% |
| Other Income | 675,026 | 374,472 | 80.26% |
| Other expenses | (18,446) | (27,199) | -32.18% |
| Finance cost | (181,028) | (88,422) | 104.73% |
| Profit before taxation | 788,884 | 455,352 | 73.25% |
| Taxation | (66,689) | (43,940) | 51.77% |
| Net profit for the period | 722,194 | 411,412 | 75.54% |
| Basic earnings/ (loss) per share | 5.35 | 3.05 | – |
Amount in thousand except for EPS
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Posted on: 2023-10-02T15:25:11+05:00
