Karachi: A Yousuf Dewan Company, a notable entity in the market category, has disclosed its financial results for the quarter ending December 31, 2024, revealing a substantial downturn in sales and an overall increase in losses. The financial statements, authorized for issue on January 28, 2025, reflect a challenging period for the company, with several key financial indicators showing significant declines.

The company's total assets fell from Rs. 9.01 billion in September 2024 to Rs. 8.77 billion by December 2024. This decrease is attributed to reductions in both non-current and current assets, with a notable decline in property, plant, and equipment by Rs. 103.76 million and a significant drop in stock-in-trade by Rs. 344.93 million.

For the quarter ending December 31, 2024, the company reported net sales of Rs. 271.26 million, a stark contrast to the Rs. 758.05 million recorded for the same period in 2023. The cost of sales exceeded the net sales, amounting to Rs. 592.78 million, resulting in a gross loss of Rs. 321.52 million. This marks a considerable shift from the previous year's gross profit of Rs. 33.33 million.

The company's administrative and general expenses were reduced to Rs. 16.98 million from Rs. 23.78 million in the previous year. However, distribution and selling costs also decreased significantly to Rs. 8.07 million from Rs. 34.56 million. Despite these cost reductions, the company recorded an operating loss of Rs. 345.25 million, exacerbated by a finance cost of Rs. 13.98 million, leading to a loss before tax and levies of Rs. 359.23 million.

According to information available from Pakistan Stock Exchange (PSX), the company faced levies of Rs. 232, resulting in a total loss of Rs. 359.46 million before taxation. Following a taxation benefit of Rs. 26.38 million, the loss after tax stood at Rs. 333.08 million, significantly higher than the Rs. 32.29 million loss reported for the same period last year. Consequently, the company's basic loss per share increased to Rs. 3.64 from Rs. 0.35 in the previous year.

The company's cash flow from operating activities also showed signs of distress. The net cash flows from operating activities resulted in an outflow of Rs. 16.01 million, further compounded by investing activities displaying no inflow or outflow and financing activities remaining inactive. This led to a net decrease in cash and bank balances, which fell from Rs. 28.13 million at the beginning of the period to Rs. 12.12 million by the end.

A Yousuf Dewan Company's financial struggles reflect broader challenges within its market category, as the company continues to navigate a difficult economic landscape. The management is hopeful for improved conditions in the upcoming quarters, as they seek to stabilize and enhance financial performance.