Karachi: Bannu Woollen Mills Limited has released its condensed interim financial statements for the half-year ending December 31, 2024, reviewed by statutory auditors. The financial performance during the second quarter showed a net sales decline of 8.85% amounting to Rs. 525.54 million compared to the same period last year. Despite the decrease in sales, gross profit rose by 12% to Rs. 16.60 million.

The company reported a reduction in distribution, administrative, and other expenses by 2.08% as it continues to focus on cost optimization and operational efficiency. Net profit before tax fell to Rs. 168.32 million, a significant decrease from Rs. 399.26 million in the same period last year. This decline was largely due to a share of loss amounting to Rs. 107.00 million and a lower reversal of impairment loss from associated companies, which was Rs. 189.70 million, compared to Rs. 337.14 million in the previous year.

Consequently, net profit after tax dropped by 65% to Rs. 129.32 million, resulting in earnings per share of Rs. 13.60, down from Rs. 39.07 in the corresponding quarter of the previous year. For the six-month period under review, net sales increased by Rs. 76.84 million, reflecting a 10% growth over the previous year. The growth was driven by increasing demand for the company's products, leading to higher order volumes from key dealers.

According to information available from the Pakistan Stock Exchange (PSX), the gross profit margin improved from 24.86% to 30.36% compared to the previous year, primarily due to lower manufacturing costs. The company's financial performance was positively impacted by a reduction in policy rates, which decreased finance costs to Rs. 46.63 million from Rs. 50.85 million in the prior year, representing an 8.30% reduction.

The company reported its operating fixed assets at Rs. 1.55 billion as of December 31, 2024, with additions in plant and machinery valued at Rs. 19.37 million. The depreciation charge for the period was Rs. 11.42 million. The carrying value of investments in Janana De Malucho Textile Mills Ltd., an associated company, was Rs. 1.23 billion at the end of the period, with a market value of Rs. 103.01 million.

Trade debts considered good increased to Rs. 273.90 million, while trade and other payables rose to Rs. 124.84 million. The provision for income tax and levies stood at Rs. 20.81 million as of December 31, 2024. The financial statements were authorized for issue by the Board of Directors on February 18, 2025.