Archroma sees sharp recovery in profitability

July 29, 2025(MLN): Archroma Pakistan Limited (PSX: ARPL) posted an adjusted profit after tax of Rs913.91 million [EPS: Rs26.44] for the nine-month period ended June 30, 2025, compared to a loss of Rs307.89 million [LPS: Rs8.91] in the same period last year (SPLY).

The company has declared an interim cash dividend of 200% (Rs20 per share)

The company’s net sales rose by 12.84% YoY, reaching Rs21.51 billion, up from Rs19.06bn in SPLY, on the back of a 15.02% increase in gross sales.

Trade discounts and rebates grew by 2.85% YoY, while sales tax surged by 38.49% YoY.

Cost of sales increased by 5.23% YoY, which led to a 47.5% growth in gross profit, totaling Rs5.06bn against Rs3.43bn in SPLY.

On the expense front, distribution and marketing expenses increased by 16.19% YoY, administrative expenses by 8.64% YoY, and other expenses spiked by 559.51% YoY to Rs110.04m.

Overall, total operating expenses rose by 16.98% YoY to Rs3.51bn.

The company’s other income jumped 261.33% YoY, clocking in at Rs1.55bn compared to Rs428.71m in the same period last year.

Finance costs increased by 77.18% YoY to Rs202.77m, up from Rs114.45m in SPLY.

Following these developments, profit before income tax stood at Rs1.34bn, compared to a loss of Rs374.55m in SPLY.

After accounting for minimum and final tax charges and income tax reversal adjustments, adjusted profit after tax stood at Rs913.91m, significantly improving from a loss of Rs307.89m in the corresponding period last year.

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