Gadoon Textile reports robust growth in profitability

August 7, 2025 (MLN): Gadoon Textile Mills Limited (PSX: GADT) reported a significant turnaround in its profitability for the year ended June 30, 2025, with profit for the year soaring by 201.04% to Rs2.39 billion [EPS: Rs85.33], compared to Rs794.55 million [EPS: Rs28.35] in the previous year.

Despite a 2.4% YoY decline in sales to Rs70.98bn, the company managed to boost its gross profit by 26.08%, reaching Rs6.33bn in FY25 versus Rs5.02bn last year.

This was aided by a 4.51% drop in cost of sales.

Operating profit increased by 35.39% YoY, clocking in at Rs4.85bn.

Administrative and distribution expenses rose modestly by 8.67% and fell slightly by 0.75%, respectively, resulting in a total operating expense increase of just 2.79%.

Notably, finance costs declined sharply by 36.5% to Rs2.52bn, offering much-needed relief, while other income reversed from a loss of Rs490m last year to a gain of Rs1.9bn in FY25.

Despite a 14.83% drop in profit before tax to Rs1.22bn, the company recorded an income tax credit of Rs3.6bn this year compared to an expense of Rs640m last year.

Consequently, profit before final adjustments ballooned by 380.69% to Rs3.6bn.

After accounting for final tax adjustments, net profit before other comprehensive income (OCI) rose to Rs3.4bn marking a remarkable 976.01% increase YoY.

However, the company reported a taxation of Rs1.01bn, reversing a gain of Rs478m from the previous year.

Still, overall profit for the year remained strong at Rs2.39bn, reflecting robust year-end performance despite headwinds in sales.

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