Zim Laboratories Reports Mixed Performance in Q1 FY25 Financial Results

Zim Laboratories, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Zim Laboratories has seen a negative performance in the quarter, with a score of -14 compared to -4 in the previous quarter. However, there are some positive aspects to the company’s financials. The Profit After Tax (PAT) for the half-yearly period has grown by 20.35% year on year, and the net sales for the quarter have also shown a growth of 21.32% year on year.

On the other hand, there are some areas of concern for Zim Laboratories. The company’s operating cash flow has been consistently falling in the last three years, and the interest cost has increased by 25.44% quarter on quarter. This indicates that the company is relying more on borrowings to fund its operations. Additionally, the non-operating income for the quarter is 81.30% of the Profit Before Tax (PBT), which may not be a sustainable business model.

Moreover, Zim Laboratories has the highest debt-equity ratio in the last five half-yearly periods, indicating a potential liquidity strain. The company’s debtors turnover ratio has also slowed down, which may affect its ability to settle its debts.

Overall, Zim Laboratories has shown a mixed performance in the quarter ending June 2024. While there are some positive aspects, there are also some concerns that investors should keep in mind. It is important to carefully analyze the company’s financials before making any investment decisions.