Karachi: Al-Khair Gadoon Limited has released its condensed interim financial statements for the half-year period ending December 31, 2024, revealing a notable increase in net sales and moderate fluctuations in profit margins. The company reported net sales of Rs.665.45 million, marking an 11.00% increase from the Rs.599.48 million reported for the same period last year.

The company's financial performance for the half-year ending December 31, 2024, showed a gross profit of Rs.79.50 million, up from Rs.72.03 million in the previous year. However, net profit saw a decline, reaching Rs.7.02 million compared to Rs.8.68 million in the same period last year. This reduction in net profit occurred despite the increase in sales, primarily due to the rise in finance costs from Rs.6.62 million to Rs.17.38 million.

Operational expenses presented a mixed picture with administrative expenses decreasing from Rs.32.62 million to Rs.26.31 million while distribution expenses increased to Rs.24.34 million from Rs.18.96 million. These variations resulted in an operating profit of Rs.28.86 million, an improvement from Rs.20.44 million in the same period of the previous year.

According to information available from the Pakistan Stock Exchange (PSX), Al-Khair Gadoon Limited's issued, subscribed, and paid-up capital stood at Rs.100.00 million, with capital reserves of Rs.25.00 million and unappropriated profit totaling Rs.204.41 million. The shareholders' equity increased to Rs.329.41 million from Rs.322.39 million as of June 30, 2024.

The company faces several market challenges including lower interest rates, reduced purchasing power among consumers, and new taxes introduced in the recent Finance Bill. These factors have prompted the management to evaluate their impact on future business performance. The company's strategic response includes enhancing operational efficiencies, managing product mixes, controlling costs, and strengthening trade partnerships.

Al-Khair Gadoon Limited's interim financial statement was authorized for issue by the board of directors on February 24, 2025. The company's management expressed appreciation for the dedication of its employees and the support of its stakeholders, acknowledging the critical role of customers and retailers in its operations.