AVN slips into red in 1HCY26

August 28, 2026 (MLN): Avanceon Limited (PSX: AVN) slipped into the red for the half-year ended June 30, 2026 (1HCY26), reporting a net loss of Rs259.85m compared to a net profit of Rs167.99m in the corresponding period last year.

Reflecting this bottom-line reversal, basic and diluted earnings per share (EPS) turned negative at a loss per share (LPS) of Rs0.62 for the six-month period, compared to a basic EPS of Rs0.38 in 1HCY25.

The primary factor driving the financial downturn was administrative and selling expense inflation, along with higher taxation outlays, which offset a strong 34% expansion in top-line revenue.

Revenues grew by 34% year-on-year to reach Rs7.04bn, up from Rs5.24bn in 1HCY25. Although cost of revenue expanded 40% to Rs5.08bn, robust sales volume enabled gross profit to increase 21% to Rs1.96bn compared to Rs1.62bn in the prior year.

On the operational front, overheads expanded significantly to support business activities and regional positioning.

Administrative and selling expenses rose 45% to Rs1.91bn, while other expenses surged 167% to Rs105.92m.

Coupled with a 52% decline in "other income" (falling to Rs77.54m from Rs162.33m), operational cost inflation squeezed profit from operations down by 95% to Rs21.74m.

Below the operating line, high borrowing charges continued to weigh heavily on performance, with finance costs standing at Rs222.90m (down 13% from Rs255.05m in 1HCY25). This pushed the pre-tax position into a loss before tax of Rs201.16m.

The company absorbed a corporate taxation charge of Rs58.69m for the period (compared to a tax credit of Rs1.65m in 1HCY25).

Compounded by administrative expense inflation, reduced non-operating income, and heavy finance charges, Avanceon Limited securely closed the six-month period with an overall net loss of Rs259.85m.

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