Karachi: The Board of Directors has released the un-audited condensed interim financial statements for the period ended September 30, 2024. The financial results highlight significant challenges and operational changes within the company, focusing on its financial performance and strategic adaptations to the current economic environment.
The latest figures reveal a considerable decrease in net sales, which fell by 42.04% to Rs. 719.91 million from Rs. 1.24 billion in the corresponding period last year. This downturn is also reflected in the gross profit, which plummeted by 54.15% to Rs. 167.25 million. Despite these declines, there was a notable recovery compared to the previous quarter of the 2023-24 financial year, showing an increase in sales by 16.29%.
According to information available from the Pakistan Stock Exchange (PSX), the gross profit margin has contracted by 614 basis points to 23.23%. Selling and distribution expenses have been reduced by 31.18% to Rs. 158.28 million, and finance costs decreased by 36.46% to Rs. 48.83 million. These cost-cutting measures reflect the company's efforts to navigate the challenging economic conditions, aided by a reduction in borrowing due to a sponsor’s loan and a lower policy rate.
The company reported a loss after tax of Rs. 57.90 million, a sharp contrast to the profit of Rs. 16.76 million in the same quarter last year. This resulted in a loss per share of Rs. 14.85, compared to a profit per share of Rs. 4.30 previously.
While the company faces ongoing challenges, such as increased electricity costs and reduced consumer purchasing power, there are positive indicators as well. These include an increase in exports and remittances and the achievement of a current account surplus, signaling potential macroeconomic stability.
The Board of Directors extends its gratitude to customers, financial institutions, staff, suppliers, and shareholders for their support and cooperation as the company strives to overcome these challenges and focuses on sustainable growth and long-term stability.