Lahore: In a challenging year marked by economic hurdles and increased production costs, S.S. Oil Mills Ltd reported a significant decrease in their annual profit after taxation, which plunged to a loss of PKR 147.84 million from a profit of PKR 134.34 million in the previous year. According to information available from the Pakistan Stock Exchange (PSX), the downturn reflects a broader trend impacting the oil extraction industry in the country.

S.S. Oil Mills, a prominent player in the solvent extraction and oil production sector, faced a tough economic environment characterized by restrictions on GMO seed imports and SBP import limitations which severely disrupted the company's operations. These restrictions contributed to a substantial 27% decline in sales volume, culminating in net sales of PKR 4.52 billion, down from PKR 6.23 billion in the prior year.

The company's financial statement for the year ended June 30, 2024, reveals that the cost of goods sold remained high, totaling PKR 4.28 billion, leaving a gross profit of PKR 232.76 million. This represents a drastic reduction from the PKR 578.34 million gross profit reported last year. Operating profit followed a similar trajectory, declining to PKR 177.28 million from PKR 527.77 million.

Financial costs for the year surged by 67% to PKR 278.12 million, further eroding the company’s bottom line. The Board of Directors did not recommend any dividend, reflecting the company's cautious stance in preserving cash amid ongoing financial challenges.

The company’s annual general meeting is scheduled for October 28, 2024, where shareholders are expected to address the reappointment of auditors and the election of directors. This meeting will also include discussions on ratifying transactions with related parties and approving the digital circulation of annual reports to shareholders.