Agritech returns to profitability in first half FY25

August 5, 2025 (MLN): Agritech Limited (PSX: AGL) has posted a net profit of Rs2.24 billion for the six-month period ended June 30, 2025, compared to a net loss of Rs1.24bn in the same period last year, reflecting a notable financial turnaround.

Earnings per share (EPS) rose to Rs3.74 from a loss per share of Rs2.06, driven by strong other income and significantly reduced finance costs.

Net sales declined 7.67% to Rs13.21bn during the half-year under review, from Rs14.31bn in the corresponding period last year.

The cost of sales dropped 6.96% to Rs11.13bn, but not enough to protect margins, leading to an 11.30% decline in gross profit, which stood at Rs2.08bn.

The company faced a steep increase in expenses, with selling and distribution expenses more than doubling to Rs924.35 million, up 130.43%, and administrative costs rising 11.87% to Rs465.32m.

Other expenses saw an unusual surge to Rs524.89m, compared to just Rs1.19m last year.

As a result, total operating expenses jumped 133.98% to Rs1.91bn.

On the positive side, other income soared by 614.45%, reaching Rs4.85bn, providing substantial support to the bottom line.

This led to an operating profit of Rs5.02bn, more than double the Rs2.21bn reported in the same period last year — a jump of 127.27%.

Finance costs declined by 41.75% to Rs2.02bn, further improving pre-tax profitability. Consequently, the company reported a profit before taxes of Rs2.99bn, a sharp contrast to the loss of Rs1.27bn in 1HFY24.

Despite a 266.55% increase in final and minimum taxes, the company closed the period with Rs2.24bn in net earnings, showing a strong recovery.

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