Exterminators PLC has demonstrated resilience in the first quarter of Financial Year 2023/24 amidst challenges.Despite challenging market conditions, the company has managed to maintain a positive trend in the first quarter of FY24. Undoubtedly, the past quarter has presented several challenges for their company. A series of factors, including the significant increase in corporate tax, the introduction of VAT and SSCL in previous quarters, and the unprecedented rise in personal income tax, have all impacted their revenue streams.
One of their major revenue streams, the middle class, has been badly affected by the significant increase in personal income tax and prevailing inflation. For decades, this segment has been a key contributor, generating approximately one-fourth of their total revenue. However, the recent hike in personal income tax has significantly reduced the spending power of this crucial demographic. As a result, they have witnessed a decline in their consumption levels and, consequently, a notable decline in their revenue from this segment. Exterminators said while the past quarter has posed significant challenges for the company, it is through calculated and strategic responses that they were able to weather these obstacles and emerge stronger in the face of adversity.
The Company saw a 7% increase in revenue, gross profit by 21%, operating profit by 126%, and net profit by 125% compared to the immediate quarter ending 31.03.2023. Furthermore, when compared to the first quarter of FY 23, it experienced a 9% increase in revenue and a 2% increase in gross profit, with only a minor deduction of 1% in net profits. This positive trend is an encouraging sign for the future of the company, Exterminators PLC said.