Lahore: Hala Enterprises Limited reported a significant downturn in its financial performance for the fiscal year ending June 30, 2024, with a notable shift from profit to loss, compared to the previous year. The company, which had recorded a profit in 2023, faced a tough financial year, culminating in a net loss.

In the year 2023, the company achieved a net profit of PKR 18.93 billion, but the latest financial results indicate a net loss of PKR 47.36 billion for 2024. Revenue fell from PKR 648.20 billion in 2023 to PKR 521.61 billion in 2024, contributing to the downturn. The cost of revenue also saw a reduction, dropping from PKR 509.08 billion last year to PKR 448.19 billion this year, but this was not sufficient to maintain profitability.

Operating expenses remained a critical factor, totaling PKR 84.18 billion, down from PKR 95.08 billion in 2023, yet insufficient to counteract the revenue decline. Operating profit, which was PKR 44.04 billion in 2023, turned into a loss of PKR 10.76 billion in 2024. Finance costs and other charges further compounded the financial strain, leading to a profit before tax of negative PKR 42.23 billion.

According to information available from the Pakistan Stock Exchange (PSX), there were no dividends, bonus shares, or rights shares announced, indicating a strategic focus on stabilizing the financial position without distributing earnings. This decision reflects the company’s response to the challenging economic conditions impacting its financial health.

The earnings per share also reflected the company’s struggles, moving from PKR 1.46 in 2023 to a loss of PKR 3.64 per share in 2024. Hala Enterprises' board of directors, meeting in Lahore on September 28, 2024, emphasized their commitment to navigating the challenging economic environment and steering the company towards recovery.