Islamabad: Biafo Industries Limited has announced a significant decrease in profit for the six-month period ending December 31, 2024, according to its un-audited condensed interim statement of profit or loss. The company's profit after income tax for the period stood at 132.05 million, a substantial drop from 308.79 million recorded during the same period in 2023. Earnings per share also declined to 2.85 from 6.66 in the previous year.

The revenue for Biafo Industries during the six-month period was reported at 1.23 billion, down from 1.38 billion in the previous year. The cost of sales was recorded at 825.51 million, compared to 749.05 million in the same period last year, resulting in a gross profit of 399.87 million, a decrease from 626.83 million.

Operating profit saw a significant reduction, standing at 247.58 million compared to 398.21 million in the previous year. Notably, finance costs for the period amounted to 22.69 million, while finance income was 14.93 million, resulting in a net finance cost of 7.76 million. The profit before income tax was reported at 222.69 million, down from 326.10 million.

According to information available from the Pakistan Stock Exchange (PSX), the company's administrative expenses amounted to 118.05 million, while distribution expenses were 35.96 million. Net impairment losses on financial assets were recorded at 8.90 million, a significant decrease from 90.22 million in the previous year.

In terms of cash flows, Biafo Industries reported net cash used in operating activities at 119.86 million, in contrast to a net cash inflow of 192.78 million in 2023. The company faced a cash outflow of 145.30 million from financing activities compared to 174.97 million in the previous year. This resulted in a net decrease in cash and cash equivalents of 264.65 million, leaving the cash balance at the end of the period at a negative 351.37 million.

The company's cash flows from investing activities showed a marginal net cash generation of 0.52 million, contrasting with a net cash reduction of 0.06 million in the previous year. The acquisition of property, plant, and equipment accounted for an outflow of 23.52 million, while proceeds from the sale of property, plant, and equipment contributed an inflow of 13.65 million.

The financial performance of Biafo Industries Limited during this reporting period reflects a challenging market environment, impacting both revenue and profitability.