Suzuki informed the Pakistan Stock Exchange of their 2022 year earnings in a notice (PSX). The business has a loss of Rs. 6.3 billion at year’s end 2022. This represents the lowest earnings or losses the firm has seen in the previous seven years. Although selling 7% more cars in 2022 than in 2021, according to sales figures published by the Pakistan Automotive Manufacturers Association, Suzuki suffered a loss (PAMA).
The motor company’s sales revenue and cost of goods sold increased by 26% year over year (YoY), while its gross profit increased by 43% YoY as the year ended. In contrast to the Rs 8.17 billion recorded at the end of 2021, gross profit came in at Rs 11.68 billion. The gross profit margin increased as well, going from 5% in 2021 to 6% in 2022.
Corresponding to this, it experienced rises of 9% and 19% YoY in its administrative and distribution and marketing costs, respectively. But, if it weren’t for the rise in the cost of financing, the company’s profitability would have continued to be greater despite these increases.
Suzuki’s cost of financing increased from Rs 737 million in 2021 to Rs 11.6 billion in 2022, a 1476% YoY rise. This rise is so startling that Suzuki informed the PSX separately and provided an explanation.
Suzuki owes foreign businesses $218 million as of December 31, 2022, according to the notice, up from $184 million at year’s end. The Firm lost Rs. 3.55 billion till December 31, 2022 as a result of adverse exchange rates when performing transactions and retaining foreign currency reserves. The Pakistani Rupee has lost value against the US Dollar since the year ended, translating into an unrealized loss of over Rs 9 billion, which might have a detrimental effect on the Company’s financial situation in 2023.