The Organic Meat Company Ltd, which got listed at the Pakistan Stock Exchange (PSX) this year, announced its financial results for the fiscal year 2019-20.
The meat company has reported a profit of Rs. 266.35 million, showing a growth of 22.2% as compared with a profit of Rs. 217.97 million last year. The growth can be attributed to the increase in sales of the company.
Along with the result, TOMCL announced a final cash dividend of Rs. 2 per share i.e. 20%. The sales of the company clocked in at Rs. 3.38 billion, up by 31.52% as compared to Rs. 2.57 billion last year. The majority of the sales, (85-90%) came from the exports which are mostly from the Middle East. The cost of sales saw a rise of 27.31% to Rs. 2.75 billion as compared to Rs. 2.16 billion.
The company mostly supplies products to Iraq, Kuwait, Oman, Qatar, Kingdom of Saudi Arabia (“KSA”), United Arab Emirates (“UAE”), Bahrain, Egypt, Azerbaijan, Malaysia, Hong Kong, Myanmar, Maldives, and Vietnam.
The gross profits went up to Rs. 629.93 million from Rs. 407.66 million while the administrative expenses went up to Rs. 67.19 million from Rs. 53.55 million.
According to a market analyst, there was an expectation that the fourth quarter will be good for the fresh meat exporters but the company showed a lower gross margin of 15% compared to an average of 19% in the last three quarters.
The finance cost increased by 26.73% to Rs. 90.07 million as compared to Rs. 71.07 million during the period. However, other income saw a huge dip of 92% during the year. It was down to Rs. 18.06 million from Rs. 225.03 million.
Earnings per share of the company were reported at Rs. 3.71 as compared to Rs. 4.46 last year. TOMCL’s shares at the bourse closed at Rs. 31.38, up by Rs. 0.43 or 1.39%, with a turnover of 3.50 million shares on Thursday.