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Share price of Sun Pharma: Taro reports an operational loss in the June quarter owing to one-offs and greater expenditures

Jul 27, 2023

By: BlinkX Research Team

In an overnight announcement, Taro Pharma Ltd., a US subsidiary of Sun Pharma, stated that it had an operational loss of $7.9 million from April to June. It previously reported an operational profit of $14 million for the same period the previous year.

Taro reported an operating loss of $1.7 million for the quarter after adjusting for the exceptional items. In connection with the anticipated transfer of Alchemee's activities from California to New York, the company had to take a one-time charge of $6.2 million for transitional expenses.

Alchemee, a skin care company, was purchased by Taro for $90 million in February of last year.

Taro's net sales for the period increased by 1.4 percent from the prior year to $158.9 million. When compared to the March quarter, the sales statistics are also higher.

The exceptional item also contributed to a $55.9 million increase in sales and other administrative expenses. Additionally, net profit for the quarter decreased from $14 million to $10 million from last year. Despite a $4.6 million tax benefit in the most recent quarter, net earnings decreased. In the first quarter, the company had a $2 million tax expense. The bottom line was also helped by $2.1 million in forex income, compared to $0.3 million in forex expenditure in the previous quarter.

Shares of Taro Pharma had ended 0.4 percent lower overnight.

Source: Media Reports