BFAGRO FY26 profit softens 16%

October 02, 2026 (MLN): Barkat Frisian Agro Limited (PSX: BFAGRO) reported a 16% decline in its consolidated net profit for the fiscal year ended June 30, 2026, recording Rs624.39m compared to Rs741.69m in the preceding year.

Reflecting this bottom-line compression alongside changes in capital structure, basic and diluted earnings per share (EPS) for the year fell to Rs2.01, down from Rs3.68 in FY25.

The primary factors weighing on final earnings were higher operational expenses, reduced foreign exchange gains, and a sharp swing into deferred taxation charges, which offset top-line revenue expansion and cost-of-goods management.

Net sales grew by 6% year-on-year to Rs7.69bn, up from Rs7.25bn in FY25.

With cost of sales expanding by 6% to Rs6.65bn, gross profit increased 6% to Rs1.04bn compared to Rs977.82m in the prior year.

On the operational front, overheads expanded across administrative and distribution channels. Selling and distribution expenses rose 19% to Rs206.01m, while administrative expenses jumped 67% to Rs116.52m.

With other expenses contracting slightly to Rs60.73m, operational overheads surged 25% to Rs383.25m.

Coupled with an 82% drop in exchange gains (Rs15.91m down from Rs89.34m in FY25), operating profit fell 7% to Rs759.64m (despite a 58% boost in "other income" to Rs89.99m).

Below the operating line, BFAGRO gained debt-servicing relief, with finance costs falling 23% to Rs60.76m (down from Rs78.93m in FY25). Profit before taxation stood at Rs698.86m (down 5% year-on-year).

However, the final bottom line was heavily impacted by taxation dynamics. While FY25 benefited from a net tax credit of Rs3.02m, FY26 absorbed a deferred tax charge of Rs74.46m.

This tax reversal offset operational gross margin gains, leading Barkat Frisian Agro Limited to close the fiscal year with a net profit of Rs624.39m.

Copyright Mettis Link News