AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan Oxygen Limited disclosed its financial results for the first half of the year and the second quarter, ended June 30, 2024. The Board of Directors, in their recent meeting, declared no changes to dividends or share distributions, maintaining a stance of nil cash dividends, bonus shares, and right shares.
According to information available from the Pakistan Stock Exchange (PSX), the company’s consolidated financial statements indicate a gross sales increment to Rs. 5.49 billion for the half year, up from Rs. 3.70 billion in the same period of the previous year. Similarly, the second quarter saw a rise from Rs. 1.88 billion to Rs. 2.77 billion. After adjusting for trade discounts and sales tax, the net sales recorded were Rs. 5.49 billion and Rs. 2.77 billion respectively.
However, despite the increase in gross revenue, the net earnings told a different story. The half-yearly profit before taxation stood at Rs. 533.71 million, a significant increase from the previous year’s Rs. 48.11 million, reflecting a more robust operational performance albeit starting from a lower base. This was mirrored in the quarterly performance, with profits before tax rising to Rs. 234.98 million from just Rs. 1.13 million year-on-year.
Operational costs also saw a substantial rise. The cost of sales surged to Rs. 4.05 billion for the half-year period, up from Rs. 3.15 billion in the previous year, impacting the overall profitability margins. Administrative expenses were slightly up, and distribution and marketing expenses registered a noticeable increase.
Taxation for the period was noted at Rs. 222.80 million for the half-year, compared to Rs. 14.42 million in the prior year, aligning with the increased pre-tax profits.
The company also reported earnings per share of Rs. 3.57 for the half-year, a significant rise from Rs. 0.39 in the prior year. This reflects a considerable improvement in per-share earnings despite the static dividend policy.
Pakistan Oxygen Limited’s report indicates a cautious optimism in operational performance but a cautious approach towards shareholder payouts, reflecting the broader economic conditions affecting the industry sectors it serves.
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