Image Pakistan Ltd Reports 47% Increase in FY24 Revenue and Outlines Expansion Plans.

Karachi: Image Pakistan Ltd (IMAGE) held its analyst briefing today to inform investors about the company’s financial results for the fiscal year 2024 and to discuss its future outlook.

According to AKD Securities Limited, IMAGE reported a topline of PkR3.9 billion for FY24, a significant 47% increase compared to PkR2.7 billion in FY23. The company attributed 74% of its revenue to retail store sales, while 26% came from online sales.

IMAGE’s earnings for the year reached PkR399 million, with an earnings per share (EPS) of PkR2.78, up from PkR289 million (EPS: PkR2.65) compared to the same period last year. The management highlighted that gross margins are expected to fluctuate each quarter due to seasonal variations and competitive pressures. Profitability in the last quarter of each fiscal year is typically affected by higher advertisement expenses, which are anticipated to provide benefits throughout the subsequent year, although their impact is not fully captured in the current quarter’s topline.

In terms of expansion, IMAGE currently operates in 14 locations and plans to open a new outlet in Dolmen Mall Lahore in November 2024. Additional outlets are also planned for Faisalabad and Sialkot during the fiscal year. The company has already put 8 of its 30 multi-head machines into operation, with contracts for the remaining 22 machines finalized and shipments expected by the end of the year. These machines are set to become operational by February 2025, with a required capital expenditure of approximately US$600,000. The machinery upgrade will not increase capacity but will enable IMAGE to bring 25% of previously outsourced work in-house.

IMAGE also aims to maintain its tax-exemption status by acquiring a subsidiary, IMAGE Global, which will manage its local e-commerce and export-related business. Additionally, management pointed out that opening an outlet in a mall incurs rental costs ranging between PkR8,000-10,000 per square foot, compared to PkR6,000 per square foot for a standalone outlet.

To counter previous lower sales during the winter season due to festivities, IMAGE has launched a new Festive Collection aimed at boosting sales during the winter months. The company’s stock is currently not under formal coverage.

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