Karachi: Amid challenges such as rising borrowing and energy costs, Hala Enterprises Limited closed the fiscal year ended June 30, 2024, with a net loss, according to the company's annual Chairman’s message. Revenue and gross margins have notably declined as the company navigates an economically tough period highlighted in their annual report.

The year 2024 was marked by significant financial pressures for Hala Enterprises, primarily due to exorbitant increases in borrowing and energy expenses. These challenges were compounded by a decrease in revenue, signaling a strenuous phase for the company amidst a competitive and high-cost energy environment in Pakistan's South and South East regions.

According to information available from the Pakistan Stock Exchange (PSX), the company is taking strategic steps to mitigate these financial setbacks. A key initiative underway is aimed at reducing energy costs, which the company's management expects to complete in the upcoming period. This project is critical as it addresses the primary drag on the company's profitability this past year.

Looking forward, the fiscal year 2024-25 poses its own set of challenges, with issues like the blockage of the Suez Canal impacting transit times to Europe and diminishing demand for textile products on the international market. Despite these hurdles, the company's Chairman expressed a steadfast belief in the Board's ability to navigate these difficulties through decisive and effective leadership.

The Chairman also extended gratitude to all stakeholders, including directors, employees, shareholders, customers, and regulators, underscoring their vital roles in supporting the company through its endeavors.