Karachi: Matco Foods Limited, a leading agro-processor in South Asia, reported a 39% increase in net sales, reaching PKR 27.70 billion for the fiscal year ending June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the surge was primarily driven by a 25% rise in basmati rice exports, totaling 40,923 metric tons. However, local sales witnessed a decline of 33%, reflecting reduced consumer purchasing power amid high inflation and interest rates.

Despite the increase in sales, the company encountered a net loss of PKR 262.00 million, a stark contrast to the previous year's profit of PKR 556.00 million. Elevated costs due to inflation and a significant 90% increase in finance expenses contributed to the financial downturn. The company's cost of sales escalated by 40%, primarily due to higher charges for power and other utilities.

The challenging conditions also affected the export sector, with disruptions in the Red Sea region impacting the company’s export performance. According to the directors' report, these economic and geopolitical challenges pose risks to future performance, with currency devaluations and high interest rates continuing as significant concerns.

Matco Foods remains committed to navigating these turbulent economic waters, focusing on cost-efficiency and strategic market expansions to maintain its leading position in the industry.