Karachi: IBL Healthcare Limited has reported a significant decline in its profit after taxation for the fiscal year ended June 30, 2024. The figures released show a profit of just Rs. 7.55 million, a stark decrease from the previous year's Rs. 308.96 million. This downturn has occurred despite a slight decrease in revenue from contracts with customers, which amounted to Rs. 3.60 billion this year, compared to Rs. 4.03 billion in 2023.

The company faced various financial challenges over the year, including a rise in cost of sales which scaled to Rs. 2.65 billion, diminishing the gross profit margin. Additionally, substantial increases in marketing and distribution expenses, which surged to Rs. 693.63 million, and administrative and general expenses, which rose to Rs. 104.83 million, further eroded earnings. According to information available from the Pakistan Stock Exchange (PSX), finance costs and minimum tax levies also impacted the bottom line, with finance costs alone increasing to Rs. 67.39 million.

The total comprehensive income for the year stood at a mere Rs. 7.55 million, highlighting a drastic reduction from the comprehensive income reported in the previous year. This financial statement has cast a spotlight on the challenges faced by IBL Healthcare in maintaining profitability amidst rising operational costs and a competitive market environment.

Earnings per share also saw a drastic decline, dropping to Rs. 0.09 from Rs. 3.61 in 2023, reflecting the overall decrease in profitability for the year.