October 30, 2023 (MLN): The Organic Meat Company Limited (PSX: TOMCL) revealed its profits for 1QFY24, wherein the profit after tax clocked in at Rs51.92 million [EPS: Rs0.38] compared to a profit of Rs111.69m [EPS: Rs0.83] in the same period last year (SPLY).
Going by the results, the company's top line inflated by 2.01x YoY to Rs2.29 billion as compared to Rs1.14bn in SPLY.
TOMCL sold 2155 MT of chilled meat, frozen meat and frozen offal including pet chews during the first quarter of the current financial year.
Volumetric sales of frozen products grew by 5.42x, while sales of fresh chilled meat were 40% of total sales volume.
During this quarter, the company started exports of MAP vacuum chilled meat products to the UAE market and expects that this new product category will have a steady demand in the UAE market.
The UAE continued to remain TOMCL's largest market with about 48% of volumetric sales.
Further, the exports of offal picked up in the current quarter to the far East and pet chews exports to North and South America.
The cost of sales also rose by 2.08x YoY but was lesser than proportionate to sales increase, which improved the gross profit by 63.19% YoY to Rs269.51 million in 1QFY24.
The increase in cost of sales was directly attributable to increased sales.
Margins were maintained due to a reduction in prices of raw materials and packing materials due to the reduced US Dollar / PKR parity.
Decreased selling prices averaged around 0.45% for every product category in USD terms and the devaluation of PKR against USD averaged 47.1%, as against the comparative financial period.
During the period under review, other income went down by 79.53% YoY to stand at Rs18.49bn in 1QFY24 as compared to Rs90.31bn in SPLY, which was attributable to reduction in exchange gains on realizations of export proceeds due to strengthening of PKR as against USD.
On the expense side, operating expenses increased primarily due to a net increase in rising freight rates as compared to the previous period is, and PKR devaluation against USD which also led to increase in freight rates.
The company’s finance costs expanded by 76.28% YoY and stood at Rs62.42bn as compared to Rs35.41bn in 1QFY23, due to the net effect of the rising mark-up costs on borrowings during the past year.
On the tax front, the company paid a higher tax worth Rs23.47bn against the Rs12.21bn paid in the corresponding period of last year, depicting an increase of 92.22% YoY.
| Unconsolidated (un-audited) Financial Results for Quarter ended 30 September, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | 44834 | % Change | |
| Sales | 2,292,232 | 1,139,998 | 101.07% |
| Cost of sales | (2,022,723) | (974,852) | 107.49% |
| Gross Profit | 269,509 | 165,147 | 63.19% |
| Administrative expenses | (30,107) | (26,094) | 15.38% |
| Selling expenses | (113,313) | (63,079) | 79.64% |
| Allowance for doubtful debt | (6,758) | (6,976) | -3.13% |
| Other Income | 18,489 | 90,312 | -79.53% |
| Finance cost | (62,421) | (35,410) | 76.28% |
| Profit before taxation | 75,398 | 123,899 | -39.15% |
| Taxation | (23,474) | (12,212) | 92.22% |
| Net profit for the period | 51,924 | 111,687 | -53.51% |
| Basic earnings/ (loss) per share | 0.38 | 0.83 | – |
Amount in thousand except for EPS
TOMCL and KSE100 YTD Performance
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Posted on: 2023-10-30T15:26:24+05:00
