Karachi: Matco Foods Limited, a leading player in Pakistan's food processing sector, reported a significant loss for the fiscal year ending on September 30, 2023, despite witnessing a surge in net sales. The company's financial statement revealed a net loss of 262.47 million Pakistani Rupees for the year, a stark contrast to the 555.62 million Rupees profit recorded in the previous year. This marks a decline of 147.24%.
The company's total net sales increased by 38.58%, reaching 27,695.67 million Rupees, up from 19,985.40 million Rupees last year. However, this growth was overshadowed by a 39.88% increase in the cost of sales, which totaled 24,524.65 million Rupees, reflecting a substantial impact on the gross profit margins.
According to information available from the Pakistan Stock Exchange (PSX), the gross profit for the year was reported at 3,171.02 million Rupees, marking a 29.26% increase from the previous year's figure of 2,453.26 million Rupees. Despite this gross profit growth, the company faced increased financial pressures, including a significant rise in finance costs, which soared by 89.78% to 2,243.88 million Rupees.
Selling and distribution expenses also saw a substantial increase of 66.31%, totaling 590.69 million Rupees, while administrative expenses rose by 20.73%, reaching 681.53 million Rupees. These rising expenses contributed to the operational challenges faced by Matco Foods in the fiscal year.
The company's other income increased by 60.86% to 86.37 million Rupees, but this was not sufficient to offset the financial burdens. Additionally, the exchange gain decreased by 53.83%, amounting to 190.39 million Rupees compared to the previous year.
Matco Foods' focus moving forward includes expanding its market share in the USA, UK, and Australia, targeting the Middle East market with branded rice, and increasing exports of newly developed products. The company is also planning regular expansion and capital expenditure to enhance its business divisions, including rice processing, rice glucose, and corn starch.