Islamabad: Agritech Limited has announced considerable gains in both financial performance and operational achievements for the six-month period ending June 30, 2024, according to information available from the Pakistan Stock Exchange (PSX).
The company disclosed an unprecedented increase in sales, gross profit, and operational gains, achieving a record Rs. 14.3 billion in sales compared to Rs. 5.6 billion in the same period last year. Gross profit soared to Rs. 2.3 billion from Rs. 367 million, while operating profits rebounded to Rs. 2.2 billion, reversing a previous loss of Rs. 182 million. This financial turnaround marks the most robust semi-annual performance Agritech has seen in over a decade.
Despite these financial strides, Agritech incurred a net loss before tax of Rs. 1,266 million, although this was an improvement over the previous year's loss of Rs. 3,098 million. The loss after tax also narrowed to Rs. 1,235 million from Rs. 2,865 million.
In operational terms, the company's urea production surged by 5% to 3,208 thousand tonnes, up from 3,058 thousand tonnes last year, primarily due to sustained gas supplies. However, urea off-takes slightly decreased by 2%, reflecting a shift in market demand. Meanwhile, phosphate nutrient production saw a significant rise of 56%, indicating a robust response to market conditions despite a slight decrease in off-takes.
The audit report flagged a material uncertainty regarding the company's ability to continue as a going concern, highlighting the substantial losses and a current liability excess over current assets. Yet, management remains confident in the continued availability of gas, which is crucial for maintaining production levels.
Significant corporate developments included the conversion of preference shares into ordinary shares and the approval of a partial redemption plan for preference shareholders. Moreover, the company is actively implementing a restructuring scheme to address its long-term debts and financial stability.
Agritech also emphasized its role in supporting national agriculture through the distribution of urea and phosphate products, aligning with government initiatives to enhance food security and agricultural productivity.
The company’s future outlook remains optimistic, contingent on the sustained availability of gas supplies and favorable government policies aimed at boosting local urea production to meet rising domestic demand.