Karachi: Gadoon Textile Mills Limited (the "Company") has announced its financial results for the half-year ended December 31, 2024, showcasing a robust financial performance. The Board of Directors, in a meeting held on January 30, 2025, at the company's headquarters in Karachi, reviewed and approved these results. The company operates within the Textile Manufacturing sector in the market.

For the six months ending December 31, 2024, Gadoon Textile Mills Limited reported net sales of Rs. 37.76 billion, an increase from Rs. 33.88 billion in the previous year. Despite a rise in the cost of sales, which amounted to Rs. 34.47 billion from Rs. 31.31 billion, the company achieved a gross profit of Rs. 3.29 billion, up from Rs. 2.57 billion in the same period of the previous year. This increase in gross profit reflects the company's effective cost management and operational efficiencies.

The company's operating expenses, comprising distribution and administrative costs, totaled Rs. 735.71 million, slightly higher than the Rs. 656.67 million recorded in the same period last year. Despite these expenses, Gadoon Textile Mills Limited reported a significant increase in its profit before tax, which stood at Rs. 1.92 billion compared to Rs. 731.01 million in the previous year. This remarkable performance was bolstered by a reduction in finance costs, which decreased to Rs. 1.42 billion from Rs. 2.07 billion.

According to information available from Pakistan Stock Exchange (PSX), Gadoon Textile Mills Limited recorded a profit after tax of Rs. 1.31 billion for the period, a considerable rise from Rs. 255.67 million in the previous year. This increase in profitability is reflected in the company's earnings per share, which improved to Rs. 46.68 from Rs. 9.12.

Despite the strong financial results, the Board of Directors has decided not to declare any interim cash dividend, bonus shares, or right shares for this period. This decision aligns with the company's strategy to reinvest profits to further strengthen its operational base and explore potential growth opportunities. The company's balance sheet as of December 31, 2024, also demonstrates a strong financial position with total assets amounting to Rs. 83.12 billion, compared to Rs. 61.83 billion as of June 30, 2024. The increase in total assets is attributed to a rise in current assets, particularly in stock-in-trade and trade debts.

In terms of cash flow, Gadoon Textile Mills Limited generated Rs. 5.07 billion from operating activities, an increase from Rs. 3.47 billion in the previous year. This positive cash flow was primarily driven by robust operating performance, despite challenges in the macroeconomic environment. However, the company reported a net cash outflow of Rs. 19.69 billion from investing activities, mainly due to substantial investments in property, plant, and equipment, as well as short-term investments.

In financing activities, the company recorded a net cash outflow of Rs. 1.11 billion, a stark contrast to the net inflow of Rs. 900.47 million in the previous year. This outflow was primarily due to repayments of term loans and other financial obligations. Overall, Gadoon Textile Mills Limited ended the period with cash and cash equivalents of negative Rs. 24.90 billion, reflecting the company's strategic investments in growth and expansion.

The financial results for the half-year ending December 31, 2024, highlight Gadoon Textile Mills Limited's strong market position and ability to navigate challenging economic conditions. The company's commitment to operational excellence and strategic investments positions it well for sustained growth and value creation for its stakeholders.