Karachi: Habib Rice Products Ltd. has disclosed a significant drop in its annual net profit for the year ended June 30, 2024, reflecting heightened cost pressures and decreased gross profits, according to the company's latest financial results.

For the fiscal year 2024, the company reported net sales of 2.34 billion rupees, a slight decline from the previous year's figure of 2.53 billion rupees. The cost of sales surged to 2.15 billion rupees, up from 1.91 billion rupees in 2023, significantly impacting the gross profit, which plummeted to 190.39 million rupees from 626.11 million rupees.

Administrative expenses and distribution costs also saw upticks, recorded at 137.91 million rupees and 164.28 million rupees respectively. Other income for the company saw an increase, reaching 73.88 million rupees. The financial strain was compounded by a decrease in other income and increased finance costs which totaled 18.02 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), Habib Rice Products Ltd. recorded a net loss of 92.43 million rupees for the year, a stark contrast to the net profit of 333.06 million rupees in the previous year. Earnings per share turned negative, with a loss of 2.31 rupees per share compared to a profit of 8.33 rupees per share in 2023.

The Board of Directors has announced the approval of these audited financial statements in their latest meeting held on September 24, 2024. The company is also gearing up for its 44th Annual General Meeting scheduled for October 25, 2024, in Karachi. The Share Transfer Books will remain closed from October 18, 2024, to October 25, 2024, to facilitate the annual meeting.