Karachi: Towellers Limited has reported a substantial decline in sales for the first quarter ended September 30, 2025, as the company grapples with heightened international competition and a sluggish U.S. retail market. According to the company’s unaudited financial statements released on October 31, 2025, sales dropped by 23.83% to 2.77 billion rupees, compared to 3.63 billion rupees during the same period last year.
The drop in sales was primarily attributed to global economic challenges and increased interest rates, which have eroded consumer purchasing power in the U.S., a key market for Towellers Limited. The dip in sales has also had a knock-on effect on the company’s profit margins. Profit after tax fell to 90.49 million rupees, compared to 177.80 million rupees in the corresponding period last year.
According to information available from the Pakistan Stock Exchange (PSX), the company’s performance has been impacted by a moderate move in profit margins, with gross profit declining from 471.02 million rupees in 2024 to 406.31 million rupees in 2025. The company’s profit from operations decreased significantly from 281.62 million rupees to 180.53 million rupees, reflecting the challenges faced in maintaining profitability amidst rising costs.
Towellers Limited has engaged in substantial capital expenditures over the past few years aimed at enhancing production capacities, particularly in the stitching units. Despite these investments, additional funding is necessary to fully realize the benefits of increased capacity. The company remains optimistic that once these investments are concluded, there will be a marked improvement in sales growth, per unit margins, and overall profitability.
The financial position as of September 30, 2025, indicates total assets of 12.80 billion rupees, an increase from 12.39 billion rupees at the end of June 2025. Current assets amounted to 6.73 billion rupees, driven by an increase in stock in trade and short-term investments. However, trade debts slightly decreased, reflecting the ongoing challenges in the market.
The directors have expressed gratitude towards shareholders and staff for their continued support, emphasizing the importance of their ongoing commitment during this challenging period. The company remains hopeful for a turnaround in performance, contingent upon the stabilization of global economic conditions and successful execution of its capacity enhancement plans.