Rawalpindi: Bannu Woollen Mills Limited announced a dramatic recovery in its financial performance for the fiscal year ended June 30, 2024. The company's financial statements, released following a Board of Directors meeting on September 21, 2024, reveal a profit of Rs. 306.21 million, a significant rebound from a loss of Rs. 343.16 million the previous year.

This turnaround is primarily attributed to a notable reduction in impairment losses on investments in associated companies, which were reversed by Rs. 446.51 million this year, compared to a recognition of Rs. 351.51 million in losses last year. According to information available from the Pakistan Stock Exchange (PSX), the company operates within the textile sector, focusing on woolen products.

The sales revenue of Bannu Woollen Mills decreased from Rs. 1.04 billion in 2023 to Rs. 891.27 million in 2024. Despite this decline, the company managed to significantly reduce its costs. The cost of sales dropped from Rs. 771.90 million to Rs. 659.27 million, aiding the overall recovery in profits.

Operational costs were tightly managed; distribution costs and administrative expenses accounted for Rs. 33.08 million and Rs. 145.07 million, respectively. The company also reported an operational profit of Rs. 58.54 million, a stark contrast to Rs. 107.82 million in the previous year.

Finance costs increased to Rs. 92.25 million, up from Rs. 70.78 million, impacting the net profits. The company did not declare any cash dividends, bonus issues, or rights shares for the year, maintaining a cautious approach towards shareholder distributions.

Further, the company recorded a comprehensive income of Rs. 305.96 million for the year, thanks to a surplus arising from property revaluations amounting to Rs. 294.87 million. The earnings per share improved significantly to Rs. 32.21 from a loss per share of Rs. 36.10 in 2023.

The Annual General Meeting (AGM) is scheduled for October 26, 2024, in Bannu, with the company's share register remaining closed from October 18 to October 26, 2024, for registration updates.