Business

Organic Meat Company posts 19% rise in profit

The Organic Meat Company’s profit rose 19% to Rs74 million during the quarter ended September 30, 2020.

According to a notice sent by the company to the Pakistan Stock Exchange (PSX) on Tuesday, the firm had recorded a profit of Rs62.1 million in the corresponding period of previous year.

Accordingly, earnings per share (EPS) of the company stood at Rs0.66 in the period under review compared to Rs0.56 during the same period of last year.

Net sales of the company increased to Rs916.1 million in the quarter under review compared to Rs722.5 million in the third quarter of 2019, an increase of 26.8%.

“Sales of the firm mainly increased as business activities resumed after lockdown in Pakistan and Gulf countries such as UAE,” said Taurus Securities analyst Mustafa Zamin while talking to The Express Tribune. “During lockdown, trade activities had ceased hence the company cleared the backlog of its orders when lockdown was lifted resulting in a spike in sales.”

In line with sales, the cost of sales of the firm also increased 32.5% to Rs778 million in the quarter compared to Rs587 million in the previous year. Subsequently, gross profit of the company witnessed a rise of 1.84% as it inched up from Rs135.6 million in the same quarter last year to Rs138.1 million during the quarter under review.

“Increase in sales is a good sign for the company’s business,” said the analyst.

Published in The Express Tribune, October 28th, 2020.

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