Lahore: Shaffi Chemical Industries Limited has released its financial results for the year ended June 30, 2024, revealing a significant downturn in profits. The Lahore-based company reported a net loss of PKR 14.98 billion, a stark contrast to the PKR 3.13 billion profit recorded in the previous year. According to information available from the Pakistan Stock Exchange (PSX), the sharp decline is attributed to increased finance costs and losses in associated company income.

The financial details show that the company's revenue increased slightly from PKR 18.82 billion in 2023 to PKR 20.24 billion in 2024. However, the cost of sales also rose dramatically from PKR 11.72 billion to PKR 15.99 billion, resulting in a reduced gross profit of PKR 4.24 billion compared to PKR 7.09 billion the previous year. Administrative and other expenses further eroded the profit, totaling PKR 4.03 billion, up from PKR 1.39 billion in 2023.

Finance costs for the year were reported at PKR 9.48 billion, slightly higher than the PKR 9.25 billion seen last year. Additionally, the company faced a significant reversal in impairment on long-term investments in associated companies, amounting to PKR 10.99 billion, which was not enough to offset other losses.

The earnings per share also reflected the negative trend, with a loss of PKR 1.25 per share compared to a gain of PKR 0.78 per share in 2023.

The Board of Directors has declared no dividends, bonus shares, or rights shares for the period. Furthermore, the company's annual general meeting is scheduled for October 26, 2024, at its registered office in Khyber Pakhtoon Khwa, with the share transfer books to remain closed from October 19 to October 26, 2024.