Clover Pakistan Limited (PSX: CLOV) has demonstrated a remarkable recovery in the first quarter of FY25, reporting a net profit of Rs87.69 million (EPS: Rs2.82). This stands in stark contrast to a loss of Rs2.78 million (LPS: Rs0.09) in the same period last year, signaling a significant turnaround for the company.
Revenue Surge
The company experienced a staggering increase in revenue, which surged to Rs825.44 million, compared to just Rs6.53 million in the corresponding quarter last year. This extraordinary growth reflects Clover’s effective strategy in enhancing sales and optimizing operations.
Gross Profit Improvement
Clover’s gross profit also saw substantial improvement, climbing to Rs102.19 million in Q1 FY25 from a mere Rs3.67 million in the previous year. The remarkable rise in gross profit is attributed to the company’s ability to manage its cost of sales effectively, which rose to Rs723.25 million from Rs2.86 million last year.
Cost Management
Clover reported a significant reduction in administrative expenses, which decreased by 35.07% YoY to Rs4.18 million, down from Rs6.44 million. This disciplined approach to cost management contributed to the impressive profit before tax of Rs98.00 million, a notable recovery from the loss of Rs2.78 million in the previous year.
Taxation and Net Profit
The company incurred a tax expense of Rs10.32 million, leading to a net profit of Rs87.69 million for the period. This turnaround marks a positive shift for Clover, as it navigates back into profitability following a challenging previous year.
Financial Snapshot for Q1 FY25
| Metric | Q1 FY25 (Rs ‘000) | Q1 FY24 (Rs ‘000) | % Change |
|---|---|---|---|
| Sales | 825,442 | 6,528 | 12,544.64% |
| Cost of Sales | (723,254) | (2,861) | 25,179.76% |
| Gross Profit | 102,188 | 3,667 | 2,686.69% |
| Administrative Expenses | (4,184) | (6,444) | -35.07% |
| Profit Before Tax | 98,004 | (2,777) | – |
| Taxation | (10,318) | – | – |
| Net Profit | 87,686 | (2,777) | – |
| Earnings Per Share (EPS) | 2.82 | (0.09) | – |
This impressive turnaround highlights Clover Pakistan’s effective strategies to rebound from previous losses, demonstrating a robust path towards growth and profitability. As the company continues to strengthen its operational efficiency and enhance sales, it positions itself favorably for future growth in a competitive market.
