Karachi: Bannu Woollen Mills Ltd. has released its annual report for the fiscal year ended June 30, 2024, showing a significant financial turnaround and overcoming numerous economic hurdles as outlined in their Chairman's review.
The year 2024 was marked by a challenging economic climate, characterized by low foreign reserves, rising energy costs, and political instability which led to increased production costs and record-high interest rates. According to information available from the Pakistan Stock Exchange (PSX), despite these adversities, Bannu Woollen Mills managed a recovery, posting a profit after taxation of Rs. 306.214 million, a substantial improvement over last year’s loss of Rs. 343.161 million.
The profit was buoyed by an unrealized share of impairment loss reversal amounting to Rs. 334.594 million from investments in Janana De Malucho Textile Mills Limited, an associated company. This reversal marks a notable financial correction from the previous year's recognized impairment loss of Rs. 366.668 million.
Financial highlights for the year show a downturn in net sales, which fell by 14.20% to Rs. 891.268 million from Rs. 1,038.734 million the previous year. Gross profit also saw a decline to Rs. 232.002 million from Rs. 266.833 million. However, earnings per share improved to Rs. 32.21 from a previous Rs. 36.10 per share loss.
The Board of Directors of Bannu Woollen Mills convened six times over the course of the year to address these financial results and strategic matters. The Board’s overall performance was assessed as satisfactory, with a focus on compliance and adopting best corporate governance practices to maintain business professionalism.
Looking forward, the company anticipates a rise in sales revenue for the fiscal year ending June 30, 2025, driven by expected improvements in Pakistan’s economic conditions. The company’s strategic focus remains on maintaining competitiveness in the woolen and blended fabric market through innovation and robust business strategies. Despite potential risks from exchange rate fluctuations and supply chain disruptions, Bannu Woollen Mills is optimistic about its future performance and growth prospects.
On behalf of the Board, the Chairman expressed gratitude to their customers, suppliers, banks, and shareholders for their continued support and confidence in the face of ongoing economic challenges. Bannu Woollen Mills remains committed to fulfilling its social responsibilities and leveraging government initiatives anticipated to boost the textile industry in Pakistan.