TOMCL's profit dips 9% YoY to Rs185.53m in 1HFY24 despite massive sales growth

February 28, 2024 (MLN): The Organic Meat Company Limited (PSX: TOMCL) has recorded a profit drop of around 9% YoY in 1HFY24, as the after-tax earnings clocked in at Rs185.53 million [EPS: Rs1.25] compared to a profit of Rs203.87m [EPS: Rs1.37] reported in 1HFY23.

Despite the company's sales recording a significant jump of 2.07x YoY to reach Rs5.24 billion in 1HFY24, earnings declined.

The profit and loss statement shows that the cost of sales also increased by 2.11x YoY. However, the growth in sales was greater than the rise in the company's cost to sell which improved the gross profit by 81.11% YoY to Rs708.32m in 1HFY24.

In the expense section, TOMCL's administrative expenses and selling expenses increased by 26.42% YoY and 42.08% YoY, reaching Rs69.76m and Rs250.48m, respectively, in 1HFY24.

The company recorded a net expense worth Rs18.57m in 1HFY24, in contrast to a net income of Rs141.26m recorded in SPLY, which was a crucial reason for the drop in profits.

Further pressure was witnessed as TOMCL's finance cost expanded by 77.89% YoY to Rs123m as compared to Rs69.14m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs51.77m against the Rs26.91m paid in the corresponding period of last year, depicting an increase of 92.39% YoY.

Amount in thousand except for EPS

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