Karachi: Biafo Industries Limited has reported a notable decline in net profit for the fiscal year ended June 30, 2024. The company's annual financial statements reveal a profit of Rs. 295.03 million, a significant drop from the previous year's Rs. 607.68 million.

According to information available from the Pakistan Stock Exchange (PSX), this decrease comes amid a challenging economic environment marked by increased finance costs and higher operational expenses. The company's revenue stood at Rs. 2.41 billion, compared to Rs. 2.71 billion in the previous year, reflecting the broader industry trend of reduced consumer spending and escalated costs.

Biafo Industries faced a sharp rise in finance costs, which surged to Rs. 109.36 million from Rs. 76.43 million a year earlier, further squeezing the profitability. Additionally, the company dealt with an increase in administrative expenses and distribution costs, which collectively eroded the bottom line.

Despite these challenges, the company managed to maintain a solid cash flow from operations, generating Rs. 525.53 million this year, up from Rs. 309.51 million in the previous year. This increase was primarily due to better management of working capital and a decrease in trade debts.

The detailed financial report indicates a revaluation of property, plant, and equipment, which impacted the overall financial position, showing a revaluation surplus net of tax impact. Biafo Industries continues to navigate through the tough market conditions with strategic adjustments and operational efficiency improvements.