Treet Corporation Ltd. (TREET) held its corporate briefing today to discuss FY24 financial results and outlook. The AKD Research has covered the briefing, and salient features are below:-
- The company’s topline stood at PkR25bn during FY24, higher by 7.4%YoY. Gross margins improved slightly to 22.7%, compared to 22% in SPLY. Earnings, however, ended negative during the full year, amounting to a loss of PkR131mn (LPS: PkR0.35) vs. a loss of PkR0.7mn (LPS: PkR0.00) in FY23.
- Domestic sales stood at PkR22.0bn, up from PkR19.8bn in FY23, driven by resilience against grey market competition, product mix improvements, and strategic pricing interventions.
- High interest rates have offset the benefits of reduced borrowings. The company reduced its total borrowings to PkR10.7bn (vs. PkR11.4bn at the end of FY23), as finance costs rose to PkR2.4bn, up 24% YoY.
- Treet Battery Ltd (TBL) ‘s operating profit rose by 41% year over year to PkR859mn. However, the subsidiary still delivered a loss of PkR286mn (vs. LAT of PkR234mn in SPLY). The loss was largely due to higher warranty and advertisement expenses.
- First, Treet Modaraba (FTMM) saw NPAT rise to PkR266mn (up 61% YoY) as the subsidiary focused on protecting its existing customer base.
- Renacon Pharma Ltd. (RPL) saw revenues/NPAT rise to PkR1.37bn/188mn, up by 28% and 181% year over year, respectively. The revenue increase was due to the rise in average unit prices (up 34% year over year), with tenders coming mostly from government hospitals alongside growing exports.
- Treet Corporation Limited established its wholly-owned subsidiary, Treet Trading LLC, in UAE to trade the company’s products generally.
- The script is not under our formal coverage.
Courtesy – AKD Research
