Karachi: S.S. Oil Mills Limited has reported a significant decrease in its profitability for the fiscal year ending June 30, 2024, according to the company’s financial statements. The company’s net loss after taxation for the year stood at Rs. 147.84 million, a sharp contrast to the net profit of Rs. 134.34 million recorded during the previous fiscal year.
The company’s sales for the year amounted to Rs. 4.52 billion, down from Rs. 6.23 billion in June 2023, representing a decline of nearly 27.50%. The reduction in sales was accompanied by a corresponding decrease in the cost of goods sold, which totaled Rs. 4.28 billion, compared to Rs. 5.65 billion in the prior year.
Despite a cost reduction, IS.S. Oil Mills’ gross profit plummeted to Rs. 232.76 million, a significant drop from the Rs. 578.34 million reported in the previous year. Operating profit also faced a sharp decline, falling from Rs. 527.77 million in 2023 to Rs. 177.28 million in the current fiscal year.
According to information available from the Pakistan Stock Exchange (PSX), the company's financial performance was further strained by a substantial increase in financial costs, which soared to Rs. 278.12 million from Rs. 166.48 million the previous year. This rise in financial expenses contributed heavily to the company’s overall net loss before taxation of Rs. 91.87 million, compared to a profit of Rs. 354.20 million in 2023.
Other income for the year amounted to Rs. 8.98 million, a decrease from Rs. 19.16 million last year. Despite this, administrative and general expenses increased marginally, reaching Rs. 54.73 million compared to Rs. 49.35 million in 2023, while selling and distribution costs declined slightly.
Taxation further impacted the company’s performance, with levies amounting to Rs. 56.45 million. The earnings per share (EPS) were also affected, falling to a negative Rs. 26.13, compared to a positive Rs. 23.74 during the same period in 2023.
The company is expected to take strategic measures to address the ongoing financial challenges that have led to this downturn in profitability.