Bata Pakistan narrows half-year loss 34% to Rs191m

August 24, 2026 (MLN): Bata Pakistan Limited (PSX: BATA) recorded a 34% reduction in its net loss for the half year ended June 30, 2026, with loss for the period narrowing to Rs191.15m from Rs288.36m in the corresponding period last year.

Showing this improvement, the company's loss per share basic and diluted narrowed to Rs25.28 from Rs38.14 in 1HCY25.

The top-line showed encouraging growth, with net revenue from contracts with customers rising 8% year-on-year to Rs9.77bn from Rs9.06bn in the prior period.

Cost of sales remained virtually flat, edging down marginally by less than 1% to Rs5.09bn from Rs5.11bn a development that, combined with the revenue growth, allowed gross profit to expand by a healthy 18% to Rs4.68bn from Rs3.95bn, showing meaningful improvement in margin management.

On the expenditure side, distribution costs rose 19% to Rs3.14bn, and administrative expenses increased 14% to Rs1.12bn, collectively absorbing a significant portion of the gross profit gains.

Net impairment loss on financial assets, however, declined sharply by 91% to just Rs4.69m from Rs50.84m a notable positive swing. Other expenses held broadly stable, rising less than 1% to Rs175.14m.

Other income more than doubled to Rs86.57m from Rs42.12m, providing a further cushion.

Finance costs remained largely contained, rising marginally by 1% to Rs362.61m from Rs357.53m.

Taken together, these movements narrowed the loss before levy and income tax significantly by 82% to Rs37.56m from Rs205.05m a marked improvement in the operating position.

The levy minimum tax declined 60% to Rs45.15m from Rs113.24m, keeping the loss before income tax at Rs82.71m, still 74% narrower than the Rs318.29m recorded last year.

The income tax line, however, moved unfavorably. Against a tax credit of Rs29.93m in the prior period, the company recorded a tax charge of Rs108.44m in the current period a swing that partially offset the operational improvement and limited the overall reduction in loss to 34% for the half year.

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