Biafo Industries’ FY26 profit stays flat at Rs389m

September 24, 2026 (MLN): Biafo Industries Limited (PSX: BIFO) recorded a broadly stable net profit for the year ended June 30, 2026, with profit for the period easing marginally by less than 1% to Rs388.94m from Rs389.49m in the corresponding period last year.

Showing this virtually flat bottom-line, the company's basic and diluted earnings per share (EPS) eased marginally to Rs8.39 from Rs8.40 in FY25.

The Board of Directors has declared a final cash dividend of Rs2.50 per share (25%) for the year ended June 30, 2026. This is in addition to interim dividend(s) already paid at Rs2.50 per share (25%).

The top-line showed healthy momentum, with net revenue from contracts with customers growing 10% year-on-year to Rs3.19bn from Rs2.90bn in the prior year.

Cost of sales rose at a slightly slower pace of 9% to Rs2.03bn, allowing gross profit to expand by 12% to Rs1.16bn from Rs1.04bn showing modest margin improvement at the gross level.

On the expenditure side, distribution expenses rose 69% to Rs145.64m from Rs86.37m a sharp increase that absorbed a portion of the gross profit gains. Administrative expenses increased 14% to Rs276.09m.

Net impairment loss on financial assets swung to a charge of Rs57.52m from a reversal of Rs12.53m last year an adverse movement. These combined pressures pulled operating profit down 6% to Rs679.22m from Rs719.97m.

Below the operating line, net other income declined 41% to Rs17.62m from Rs29.91m. Finance cost rose 18% to Rs53.58m, while finance income declined 44% to Rs4.39m from Rs7.87m, resulting in net finance cost rising 31% to Rs49.19m from Rs37.58m adding further pressure.

Workers' profit participation fund declined 9% to Rs32.38m, and workers' welfare fund held broadly stable at Rs14.53m.

Profit before income tax and final taxes declined 9% to Rs600.73m from Rs662.20m. Final taxes declined 42% to Rs2.34m from Rs4.03m, bringing profit before income tax down 9% to Rs598.40m from Rs658.16m.

The development that preserved the bottom-line was a significantly lower income tax burden. Income tax declined 22% to Rs209.46m from Rs268.67m a proportionally far larger reduction than the pre-tax profit decline providing the decisive cushion that kept profit for the period virtually flat for the full year.

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