Karachi: Bannu Woollen Mills Limited announced a significant downturn in its financial performance for the first quarter ended September 30, 2026, reporting a considerable net loss compared to the same period last year. The company's financial results, which were released on October 26, 2026, point to challenges in maintaining sales momentum and managing operational costs.

The company's net sales for the quarter plummeted to 103.68 million rupees from 235.46 million rupees in the corresponding quarter of 2025, marking a very large or significant move. The decreased sales were accompanied by an increase in the cost of sales, which reached 113.45 million rupees, up from 131.84 million rupees the previous year. Consequently, Bannu Woollen Mills reported a gross loss of 9.77 million rupees, a sharp decline from a gross profit of 103.62 million rupees recorded last year.

Administrative expenses and distribution costs also saw changes, with administrative expenses rising slightly to 38.56 million rupees from 37.35 million rupees, and distribution costs increasing to 15.50 million rupees from 12.07 million rupees. Other expenses dropped to 428,000 rupees from 2.80 million rupees, while other operating income slightly decreased to 343,000 rupees from 283,000 rupees.

According to information available from the Pakistan Stock Exchange (PSX), the company's loss from operations was recorded at 63.92 million rupees, contrasting starkly with a profit of 51.70 million rupees during the same quarter last year. The finance cost grew to 19.66 million rupees from 14.52 million rupees, further impacting the company's bottom line.

The pre-tax loss for the quarter surged to 83.58 million rupees, a reversal from a profit of 37.18 million rupees in the prior year. Minimum taxes levied amounted to 1.30 million rupees, down from 6.32 million rupees. The loss before income tax widened to 84.88 million rupees, compared to a profit of 30.86 million rupees in the same period last year. After accounting for a deferred tax income of 13.11 million rupees, the net loss for the period stood at 71.77 million rupees, reversing from a net profit of 23.67 million rupees a year ago.

The total comprehensive loss per share was reported at 7.55 rupees, a stark contrast to the earnings per share of 2.49 rupees in the previous period. The company's financial results reflect the challenging market conditions it faces in the designated market category.