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Treet Corporation faces loss of Rs267.4m in 1HFY24

Treet Corporation receives shareholders approval to divest 11.33% stake in TBL
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February 28, 2024 (MLN): Treet Corporation Limited (PSX: TREET) has witnessed a loss of RsRs267.4 million [EPS: Rs0.97] in the first half of FY24, in contrast to a profit of Rs19.77m [EPS: Rs0.07] recorded in the same period last year (SPLY).

The financial results made available by the company show that its top line went up by 8% YoY to Rs12.04bn as compared to Rs11.15bn in 1HFY23.

The cost of sales also ticked higher but its change was still less than proportionate to the growth in sales, which improved the gross profit by 25.41% YoY to Rs2.69bn in 1HFY24.

Accordingly, the gross margins improved to 22.34% as compared to 19.24% in SPLY.

Although the company received a positive response in terms of sales, the increase in expenses, finance costs, and tax expenditures resulted in the company entering negative territory.

On the expense side, the company observed a rise in Distribution expenses by 30.94% YoY and administrative expenses by 52.64% YoY to clock in at Rs1.06bn and Rs547m respectively during the review period.

Furthermore, the company also incurred an outflow on the Workers' Profit Participation Fund and Workers' Welfare Fund of Rs9.87m and Rs10.23m respectively.

During the review period, other income grew massively by 6.7x YoY to stand at Rs149.2m in 1HFY24 as compared to Rs22.25m in SPLY.

The company’s finance cost skyrocketed by 56.60% YoY and stood at Rs1.36bn as compared to Rs869.46m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a tax worth Rs90.71m against the Rs81.37m tax outflow incurred in the corresponding period of last year.

Consolidated (un-audited) Financial Results for half year ended December 31, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Net revenue 12,040,019 11,147,885 8.00%
Cost of revenue (9,350,249) (9,003,072) 3.86%
Gross Profit 2,689,770 2,144,813 25.41%
Distribution cost (1,058,062) (808,061) 30.94%
Administrative expenses (547,002) (358,369) 52.64%
Share of profit / (loss) of associates (28,883) (41,627) -30.61%
Workers' Profit Participation Fund (9,867) 4,415 -%
Workers' Welfare Fund (10,227) 7,177 -%
Other Income 149,200 22,253 570.47%
Finance Cost (1,361,612) (869,462) 56.60%
Profit before taxation (176,683) 101,139
Taxation (90,714) (81,366) 11.49%
Net profit for the period (267,397) 19,773  
Basic earnings/ (loss) per share  (1.47) 0.07)  

Amount in thousand except for EPS

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Posted on: 2024-02-28T11:09:02+05:00