Lahore: Punjab Oil Mills Limited (POML), a key player in the food processing industry, announced its financial results for the half-year ending December 31, 2024, revealing a complex financial landscape marked by increased revenue but diminished profitability.

On February 15, 2025, the company disclosed that its revenue grew by 8.5% to PKR 4,190.50 million, up from PKR 3,861.90 million in the same period of the previous fiscal year. This revenue increase, however, could not prevent a decline in gross profit, which fell by 10% to PKR 427.80 million from PKR 470.70 million. The decline in gross margins from 12% to 10% was attributed to an increase in the cost of sales.

Operating expenses were largely stable, with a slight decrease of 1% to PKR 344.70 million. Within these expenses, selling and distribution costs fell to PKR 180.40 million from PKR 190.80 million, whereas administrative expenses rose to PKR 164.30 million from PKR 157.90 million. Despite these adjustments, operating profit experienced a significant decline of 32%, dropping to PKR 83.00 million from PKR 121.90 million.

Finance costs saw a reduction of 16%, totaling PKR 74.00 million, an improvement influenced by the government's revised policy and more efficient financial management. Nonetheless, the period witnessed a substantial increase in other operating expenses.

According to information available from the Pakistan Stock Exchange (PSX), other income surged by 88% to PKR 37.80 million, driven by bank profits and the sale of fixed assets, which positively impacted overall profitability. Yet, profit before taxes and levies stood at a modest PKR 9.30 million compared to PKR 49.00 million in the previous year.

After accounting for taxation and levies amounting to PKR 52.40 million, POML reported a tax loss of PKR 43.00 million. The company ultimately posted a net loss of PKR 44.10 million, a stark contrast to the PKR 0.65 million profit recorded in the comparable period last year.

POML is actively pursuing several strategic initiatives aimed at enhancing market penetration and operational efficiency. The company is expanding into the HORECA sector, restructuring the sales force, revitalizing relationships with dormant customers, restructuring the supply chain, and strengthening institutional sales. These measures are designed to solidify POML's market presence, diversify revenue streams, and optimize operational effectiveness, anticipating a more favorable outlook for the year.