Karachi: Bunny's Limited, during its board meeting in Lahore on October 5, 2024, declared no dividends for the fiscal year ending June 30, 2024, reflecting a challenging year. The company also reported a significant drop in profitability compared to the previous year.

The financial results showcased a net revenue of 7,009.27 million, a slight increase from the previous year's 5,686.62 million. However, the cost of sales also rose to 5,585.40 million from 4,326.89 million, resulting in a gross profit of 1,423.87 million compared to 1,359.73 million in 2023. Despite the increase in gross profits, higher operating expenses, which totaled 364.23 million, and substantial selling and distribution costs of 809.68 million, up from 704.11 million, severely impacted the net earnings.

According to information available from the Pakistan Stock Exchange (PSX), the financial performance of Bunny's Limited has been a topic of considerable interest among investors. This is particularly due to the company's decision not to issue any cash dividends, bonus shares, or rights shares this year, indicating a potential restructuring or cash flow conservation strategy.

The company posted an operating profit of 249.96 million, a decline from the 407.74 million recorded last year. Additional financial burdens came from other operating expenses and a high finance cost of 271.85 million. After accounting for other incomes and levies, the company faced a net loss of 255.08 million compared to a net profit of 209.55 million in the previous year. This translated to an earnings per share shift from a positive 1.97 in 2023 to a negative 1.62 in 2024.

Bunny's Limited has scheduled its Annual General Meeting for October 28, 2024, in Lahore, where shareholders are expected to seek explanations for the financial downturn and discuss the future direction of the company. The share transfer books will remain closed from October 21, 2024, to October 28, 2024, to prepare for this meeting.