On May 19, Pakistan International Airlines (PIA) submitted its annual earnings report to the Pakistan Stock Exchange (PSX) for the fiscal year ending in 2022.
Consolidated Earnings and Loss of PIA For The Year 2022
With year-over-year (YoY) gains of 82% and 76%, respectively, the company ended the year with a consolidated loss of Rs. 97.23 billion and an unconsolidated loss of Rs 88 billion.
The earnings from PIA Investments Limited (PIAIL) and its affiliated firm Minhal Incorporated (Minhal), Sharjah are included in the company’s consolidated earnings report.
Roosevelt Hotel Holding Company N.V. (RHC), RHC Operating LLC, Minhal France Sa.r.l., Minhal France B.V., PIA Hotels Limited, PIA Aviation Limited (PAL), Avant Hotels (Private) Limited, and Minhal France S.A. (MFSA) are subsidiaries of PIAIL, which in turn owns Roosevelt Hotel Holding Company N.V. (RHC), PIAIL, and PIA Hotels Limited.
The cost of services increased by 86% YoY from Rs. 96.5 billion to Rs. 179.3 billion, while revenue increased by 103% YoY from Rs. 88 billion to Rs. 178.5 billion. As the cost of services as a proportion of revenue decreased from 109.61% to 100.42%, PIA showed operational improvements.
Gross losses fell drastically, from Rs. 8.46 billion to Rs. 755.8 million, a 91% YoY decrease. The improvement in PIA’s gross loss margin (GLM) YoY from -10% to -0.42% reflects the operational efficiency.
While administrative expenditures rose by 29% YoY from Rs. 8.9 billion to Rs. 11.477 billion and distribution costs rose by 28% YoY from Rs. 5.352 billion to Rs. 6.83 billion, other income decreased by 32% YoY from Rs. 6.89 billion to Rs. 4.68 billion.
On the other hand, operating losses fell by 17% YoY from Rs. 18.42 billion to Rs. 15.33 billion, while the operating loss margin (OLM) increased by 9% YoY from -21%.
Interest costs for national flag carrier increased by 81% year over year, from Rs. 28.5 billion to Rs. 51.7 billion. Earnings before taxes were a loss of Rs. 100.58 billion, an enormous 85% YoY rise from Rs. 54.35 billion last year.
The effective tax rate (ETR) climbed from 2% to 3%, but the tax rebate for national flag carrier grew by 287% year over year from Rs. 867 million to Rs. 3.35 billion.
Net consolidated losses for the year are Rs. 97.23 billion compared to Rs. 53.48 billion last year, a rise of 82% YoY. However, the net loss margin (NLM) increased YoY from -61% to -54%.
Unconsolidated Earnings and Loss of PIA For The Year 2022
The only thing included in national flag carrier’s unconsolidated financial report is the airline’s own profits.
While PIA’s cost of services climbed by 86% YoY from Rs. 94.6 billion to Rs. 176.17 billion, its revenue jumped by a significant 100% YoY from Rs. 86.18 billion to Rs. 172 billion.
Similar to its consolidated earnings, PIA’s unconsolidated earnings also showed relative operational efficiency, with gross losses falling from Rs. 8.46 billion to Rs. 4.13 billion.
The improvement in costs as a percentage of sales from 109% to 102% is reflected in the improvement in PIA’s GLM from -10% to -2.4%.
When compared year over year, distribution expenditures climbed by 20% from Rs. 5.1 billion to Rs. 6.14 billion, administrative costs increased by 12% from Rs. 5.67 billion to Rs. 6.35 billion, and other income fell by 4% from Rs. 6.548 billion to Rs. 6.275 billion.
Operating losses dropped by 25% YoY from Rs. 15 billion to Rs. 11.3 billion, despite increases in spending and decreases in other income. As a result, PIA’s OLM decreased from -17% to -7%.
Earnings before taxes came in at a loss of Rs. 86.5 billion due to a massive 82% YoY increase in interest expenditure from Rs. 27.39 billion to Rs. 49.9 billion.
This was a 74% YoY rise in loss before taxes compared to the loss of Rs. 49.7 billion in the prior year.
From Rs. 337.7 million to Rs. 1.49 billion, the tax rebate increased by 342% year over year. The ETR went from -1% to -2%.
Final earnings for the year were a loss of Rs. 88 billion compared to Rs. 50.1 billion in the prior year, a significant 58% YoY rise.
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