The State Trading Organization (STO) has reported a decline in its earnings and profit for the second quarter of 2024. Managing Director Shimad Ibrahim attributed this downturn primarily to a drop in tourism receipts during the low season.
Factors Contributing to Decline
In a video statement, Shimad explained that the months of April, May, and June coincide with the tourism low season, leading to reduced tourism-related receipts, which are a significant contributor to STO’s revenue. Additionally, the company’s petrol and jet fuel revenue saw a sharp decline during this period.
Operational Adjustments
Despite being a business focused on revenue, STO prioritizes ensuring the availability of consumer items at affordable prices. Shimad highlighted that the company revised fuel prices twice during the second quarter in response to global oil price changes to maintain affordability for consumers.
Financial Performance
STO’s Q2-2024 revenue was MVR 3.47 billion, down from MVR 3.78 billion in the same quarter last year and from MVR 4.49 billion in Q1-2024. The operating profit decreased from MVR 296 million in Q2-2023 to MVR 223 million in Q2-2024, while the first quarter’s operating profit was MVR 259 million. Net profit also declined from MVR 171 million in Q2-2023 to MVR 148 million in Q2-2024.
Conclusion
Despite the drop in revenue and profit, STO’s Managing Director emphasized that the second quarter remained a positive period for the company, reflecting its commitment to consumer affordability and operational resilience.
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