Karachi: Premium Textile Mills Limited announced a significant downturn in its financial performance for the fiscal year ended June 30, 2024, despite achieving higher sales, as detailed in a recent Board of Directors meeting on September 27, 2024.
The company, a major player in the textile industry, reported a net sales increase to 27.08 billion PKR for the fiscal year 2024, up from 22.83 billion PKR in the previous year. Despite the sales growth, the company experienced a sharp decline in profitability due to higher cost of sales and finance costs. According to information available from the Pakistan Stock Exchange (PSX), the cost of sales rose to 23.34 billion PKR, leaving a gross profit of 3.74 billion PKR, down from 3.94 billion PKR in 2023.
Operational expenses also increased, with administrative and distribution costs totaling over 1.00 billion PKR. The rise in finance costs to 3.07 billion PKR, up from 2.24 billion PKR the previous year, further strained the company’s earnings. The cumulative effect of these factors led to a pre-tax loss of 512.23 million PKR, compared to a pre-tax profit of 1.04 billion PKR in 2023.
The after-tax results also reflected this downturn, showing a net loss of 441.29 million PKR for the year, starkly contrasting with the net profit of 1.04 billion PKR reported in 2023. The earnings per share plummeted from 169.18 PKR to a loss of 71.60 PKR.
Amidst this challenging financial landscape, the Board of Directors decided against declaring any dividends, issuing bonus shares, or rights shares, maintaining a conservative approach in the face of the company’s current financial posture.
The Annual General Meeting (AGM) for Premium Textile Mills is scheduled for October 25, 2024, in Karachi. The share transfer books will remain closed from October 19, 2024, to October 25, 2024, to prepare for the AGM. The company plans to disseminate its annual report through PUCARS at least 21 days before the meeting to provide shareholders with comprehensive financial details and insights into the company's operations.