Karachi: Gadoon Textile Mills Limited announced its financial results for the six-month period ending December 31, 2025, revealing a decline in profits and the decision to forego cash dividends, bonus shares, and right shares. The Board of Directors convened on January 27, 2026, to discuss the company's financial standing, with the results subsequently made public.
For the six-month period, Gadoon Textile Mills reported net sales of 38.97 billion rupees, up from 37.76 billion rupees in the same period the previous year. Despite the increase in sales, the company experienced a gross profit decrease to 2.50 billion rupees from 3.29 billion rupees. The profit for the period dropped to 765.18 million rupees, compared to 1.31 billion rupees in the prior year. This represents a very large or significant move of 41.51% in profit decline.
The company's finance costs were reported at 1.37 billion rupees, a slight decrease from 1.42 billion rupees in the previous year. Other operating expenses also diminished to 90.21 million rupees from 196.61 million rupees. However, these reductions were insufficient to offset the overall decline in profitability.
According to information available from the Pakistan Stock Exchange (PSX), Gadoon Textile Mills' decision to not distribute dividends or issue bonus shares reflects its cautious approach amidst challenging market conditions. The earnings per share also saw a decline from 46.68 rupees to 27.30 rupees.
The company's cash flow from operating activities saw an increase, generating 6.04 billion rupees, compared to 5.07 billion rupees in the same period of the previous year. However, investing activities recorded a net cash outflow of 12.58 billion rupees, a significant increase from 9.69 billion rupees outflow the previous year. Financing activities reported a net cash inflow of 5.70 billion rupees, reversing the 1.11 billion rupees outflow from the previous year.
Gadoon Textile Mills' financial strategy appears focused on managing its resources carefully, given the absence of shareholder distributions and the reported financial figures. The company’s financial statements were prepared for submission through PUCARS, adhering to regulatory requirements.