Sialkot: GOC (Pak) Limited faced a downturn in annual revenue and profits, according to the financial statement for the year ended June 30, 2024. The company, a key player in the sports goods manufacturing sector, reported a 16.31% decrease in revenue from the previous year, amounting to Rs. 578.67 million. Profits after taxation also dipped significantly by 35.73%, totaling Rs. 98.85 million. The detailed financial review suggests a decline in both domestic and international demand for its primary products, including wooden and composite hockey sticks, alongside cricket balls.
The report highlights a challenging year for GOC, marked by economic policies and market conditions that have strained the manufacturing sector. Notably, the company's cost of sales dropped to Rs. 364.39 million from Rs. 437.67 million the previous year, reflecting a decrease in production volumes. Administrative and distribution expenses outlined an operational adjustment, with a notable reduction in distribution costs from Rs. 40.64 million to Rs. 22.55 million, which aligns with reduced sales activity.
According to information available from the Pakistan Stock Exchange (PSX), the performance downturn is set against a backdrop of high inflation and currency volatility which has impacted consumer spending and export competitiveness. The company's efforts to mitigate these challenges included strategic cuts in operational expenses and a sustained focus on research and development to enhance product offerings.
In a move to stabilize investor confidence, GOC has declared a cash dividend of Rs. 2.00 per share, maintaining a consistent payout despite the financial setbacks. This decision reflects the company's commitment to shareholder returns amidst a cautious economic outlook for the upcoming fiscal year.
GOC (Pak) Limited remains focused on regaining its market position through intensified marketing strategies and leveraging its reputation for quality in the sports industry. As part of its forward-looking strategy, the company is also exploring avenues for product diversification and enhanced market penetration, particularly in burgeoning sports markets across the globe.