Karachi: SG Allied Businesses Limited, a Karachi-based company, disclosed a troubling financial performance for the fiscal year ending June 30, 2024. The company reported a significant increase in sales but suffered an operational loss due to escalated administrative and selling expenses, according to their latest financial statement submitted to the Karachi Stock Exchange.

The financial summary highlighted a drastic rise in sales, reaching Rs 57.20 billion in 2024, a substantial increase from Rs 22.14 billion in the previous year. However, the cost of sales also surged, reporting Rs 41.56 billion, which led to a gross profit of Rs 15.64 billion, compared to a gross loss the year before.

According to information available from the Pakistan Stock Exchange (PSX), SG Allied Businesses reported an operating loss of Rs 99.87 billion due to overwhelming administrative and selling expenses totaling Rs 115.51 billion, which dramatically increased from Rs 85.30 billion in 2023. This operating deficit overshadowed the Rs 83.05 billion in other income the company earned during the period.

Further financial charges minimally impacted the bottom line, contributing to a pre-tax loss of Rs 18.61 billion. Despite a modest income tax expense of Rs 2.47 billion, the company posted a loss after levy and income tax of Rs 16.14 billion for the year. This figure starkly contrasts with the Rs 8.36 billion loss recorded in the previous fiscal period.

Additionally, the company experienced a revaluation of staff retirement benefits and surplus, which led to an additional net comprehensive income loss of Rs 15.40 billion for the fiscal year.

SG Allied's per-share loss also reflected the financial struggles, with a loss of Rs 1.08 per share, worsening from Rs 0.56 in 2023. This financial downturn underscores significant challenges ahead for the company as it navigates a recovery strategy in the upcoming fiscal year.