Kohinoor Mills (KML) swings to loss in FY25

September 24, 2025 (MLN): Kohinoor Mills Limited (PSX: KML) reported its financial results for the year ended June 30, 2025, revealing a significant shift from profit to loss.

The company posted a net loss after taxation of Rs19.62 million, a stark reversal from the profit of Rs233.51m recorded in the previous fiscal year (FY24). This translated into a loss per share of Rs0.04, compared to earnings per share of Rs0.46 in FY24.

Despite the bottom-line reversal, KML's top-line performance showed a decrease, with revenue declining by 9.10% year-over-year to stand at Rs27.14bn, down from Rs29.85bn in FY24.

This was primarily due to a substantial increase in Cost of Sales, which, while decreasing in magnitude by 8.14%, was not enough to counter the drop in revenue.

The company's Gross Profit consequently dropped by 14.87% to Rs3.61bn from Rs4.25bn last year.

The Gross Margin for the period was 13.32%, a decrease from 14.22% in FY24, indicating a reduction in profitability at the production level.

KML's Operating Expenses saw varied changes. While Distribution Costs and Other Expenses decreased by 8.78% and 33.36% respectively, Administrative Expenses saw a rise of 6.07%.

Overall, Total Operating Expenses decreased by 6.14% to Rs2.23bn. Other Income also saw a significant plunge of 31.06%, contributing to the squeeze on profitability.

As a result of these factors, Profit from Operations dropped sharply by 26.01% to Rs1.38bn, down from Rs1.86bn in FY24. Finance Costs declined by 31.44% to Rs1.18bn.

After accounting for finance costs, the company reported a loss before taxation of Rs15.60m, compared to a profit of Rs57.71m in the previous year. Following taxation and levy, HTL concluded FY25 with a net loss of Rs19.62m, marking a challenging period for the company.

Copyright Mettis Link News