The financial year 2024 has brought both challenges and growth for Quice Food Industries Limited. As the company releases its financial results for the year ended June 30, 2024, a closer look reveals key insights into its performance across several critical metrics. From increased sales to rising operating costs, the year has been one of financial balancing and operational adjustments.
No Dividend or Bonus Shares for FY 2024
The Board of Directors decided not to declare any dividends or issue any bonus shares for the financial year ending in June 2024. This is reflected in the report, where all entitlements, including cash dividends, bonus shares, and right shares, are marked as NIL. Similarly, no other corporate actions or price-sensitive information were declared during this period.
This conservative approach may indicate the company’s intention to focus on reinvesting resources into the business or managing liquidity amid challenging financial circumstances.
Sales Growth Amidst Rising Costs
One of the most notable points in the 2024 financial results is the increase in sales. The company recorded a total sales figure of Rs. 903,254,935, reflecting a commendable growth from Rs. 838,449,449 in 2023. While this growth suggests robust market demand and the company’s continued relevance in the food industry, it also underscores some operational challenges that followed.
Despite the rise in sales, the cost of sales also increased, climbing to Rs. 777,258,658 from Rs. 714,566,051 the previous year. This left the company with a gross profit of Rs. 125,996,277, slightly higher than last year’s Rs. 123,883,398.
Increased Operating Expenses and Distribution Costs
Although the gross profit improved, operating losses widened due to a sharp increase in expenses. Distribution costs rose to Rs. 108,368,605, up from Rs. 96,093,223 in 2023. Similarly, administrative expenses increased to Rs. 40,566,291 compared to Rs. 35,606,584 in the previous year. This marked increase in expenses appears to have strained the company’s overall profitability.
Furthermore, Quice Food Industries also reported a significant operating loss of Rs. 148,934,896 for 2024, a notable increase from the previous year’s loss of Rs. 131,699,807. This widening operating loss highlights the challenges the company faced in balancing operational costs despite growing sales.
Finance Costs Decline but Losses Persist
On a positive note, finance costs saw a decline in 2024, dropping to Rs. 128,223 from Rs. 401,782 in 2023. Additionally, the company’s other income increased to Rs. 4,032,335 from Rs. 3,689,338. Despite these improvements, they were not enough to counter the overall operational losses, as loss before taxation widened significantly to Rs. 27,144,988, compared to Rs. 12,329,721 in the previous year.
Loss After Taxation and Loss Per Share
With no tax expenses reported, the loss after taxation for the year stood at Rs. 27,144,988, a significant jump from Rs. 12,329,721 in 2023. The corresponding loss per share also increased, rising to Rs. 0.276 from Rs. 0.125 in the previous year.
Looking Ahead
The 2024 financial results underscore both growth and challenges for Quice Food Industries Limited. While sales growth signals strong market demand, rising operational and administrative costs have weighed heavily on profitability. It will be critical for the company to address these rising expenses and find ways to improve cost efficiency while continuing to leverage market demand in the coming years.
Quice Food Industries has some tough decisions ahead, particularly around cost management, but its ability to grow sales even in a tough economic environment is a promising sign of resilience. Stakeholders will be closely watching how the company navigates the balance between growth and profitability in the future.