Karachi: Quice Food Industries Limited reported a significant financial downturn despite an increase in revenue for the fiscal year ending June 30, 2024, highlighting the stark challenges faced by the consumer goods sector amid a volatile economic landscape. The company, listed under the ticker QUICE at the Pakistan Stock Exchange (PSX), disclosed an unsettling expansion in its losses, as detailed in its annual report.
The company faced a daunting loss after taxation amounting to Rs. 27.14 million, a stark increase from the previous year's Rs. 12.33 million. According to information available from the Pakistan Stock Exchange (PSX), this financial result comes despite a 7.73% increase in sales revenue, which rose to Rs. 903.25 million from Rs. 838.45 million in the preceding year. Notably, export sales, which constituted a significant 67.13% of total sales, were pivotal in bolstering the company's revenue amidst a domestic downturn.
Domestic sales suffered a severe contraction, decreasing by 28% year-on-year, attributed primarily to record high inflation and rising discount rates which have eroded consumer purchasing power. The rising operational costs, particularly due to higher energy prices and freight charges, further compounded the financial strain, reflecting a broader trend of economic distress within the country.
The Karachi-based company also indicated that gross profits saw a marginal rise of 1.71%, totaling Rs. 125.99 million, up from Rs. 123.88 million the previous year. This modest increase in gross profit underscores the disproportionate impact of rising costs on operational efficiency.
Chairman Fakhir Ahmed, in his address to shareholders, acknowledged the company's struggle against the macroeconomic and geopolitical tensions that continue to challenge the fast-moving consumer goods (FMCG) sector. The board has complied with regulatory requirements and maintained a commitment to corporate governance despite these trials.
Looking ahead, Quice Food Industries aims to navigate these turbulent times by continuing to explore cost-reduction strategies and expanding into new markets. The management's focus remains on enhancing operational efficiencies and adapting to the shifting economic conditions to stabilize and eventually grow shareholder value.