Karachi: Leather Up Ltd, a prominent leather goods manufacturer established in 1990, has reported a significant decline in profitability for the fiscal year ended June 30, 2024, according to its recently released financial statements. The company's financial performance has shown a downturn with a sharp decrease in net profit after taxation.

In 2024, Leather Up Ltd generated sales revenue of 27.52 million, a slight increase from the previous year's 27.16 million. However, the cost of sales escalated to 21.25 million from 25.65 million, resulting in a reduced gross profit of 6.27 million compared to 1.51 million in 2023.

The company's administrative and distribution expenses totaled 5.06 million and 1.30 million respectively, contributing to an operating loss of 6.37 million, compared to a loss of 7.97 million in the previous year. Additionally, other expenses and income slightly offset some of the losses, adding 657,000 to the company’s earnings, a decrease from 3.54 million in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the profit before income tax stood at 321.68 million, down from a loss of 3.28 million in the previous year. After accounting for taxation, the net profit after tax was recorded at 321.68 million, a significant recovery from a net loss of 3.28 million in 2023. However, the loss per share on a basic and diluted basis was recorded at 0.05, an improvement over the previous year's 0.55.

Leather Up Ltd's financial health has seen critical challenges, reflected in the increased costs and reduced profitability margins. The Karachi-based company, has disclosed these figures as part of its commitment to transparency and compliance with financial reporting standards.