LOADS reports sharp 71.5% plunge in profit for FY25

September 24, 2025 (MLN): Loads Limited (PSX: LOADS) has released its consolidated financial results for the year ended June 30, 2025, revealing a significant downturn in profitability despite robust revenue growth.

 The company reported a sharp 71.5% decrease in profit for the year, posting Rs81.86m compared to a profit of Rs287.26m recorded in the previous fiscal year (FY24).

This substantial decline in profit translated into a 60% drop in Earnings Per Share (EPS), which fell to Rs1.05 from Rs2.65 last year.

The company's top line performed strongly, with net revenue surging by 34.4% YoY to Rs6.03 bn from Rs4.49 bn in FY24.

However, the cost of revenue also increased by 28.3% to Rs4.71bn, compared to Rs3.67bn last year.

Despite this, the gross profit grew by a healthy 61.7% to Rs1.32bn from Rs815.76m in FY24.

This improved the Gross Margin to 21.89% in FY25, up from 18.17% in FY24.

The operational front faced several challenges:

Administrative, selling, and general expenses swelled by 27.1% to Rs376.13m.

Other expenses skyrocketed by 84.9% to Rs61.36m.

The comparison was also affected by a non-recurrence of a significant charge and gain in FY24. The company recorded no impairment of property, plant, and equipment in FY25, compared to an impairment of Rs291.32m in FY24.

 However, other income plunged by 83.4% to Rs185.35m, down sharply from Rs1.12 bn last year.

The company also recorded no "Gain on disposal in investment in associate" in FY25, which was Rs36.58 m in FY24.

As a result of the operational challenges and the steep decline in other income, the Operating Profit dropped by 18.7% to Rs1.07bn from Rs1.31 bn in FY24.

A major relief came from finance costs, which decreased by 40.2% to Rs480.76m from Rs803.77m in FY24.

Finally, a 95.2% surge in total income taxes primarily driven by a massive 95.1% increase in deferred tax to Rs502.60m eclipsed the operational recovery. This significant increase in taxation ultimately led to the substantial 71.5% drop in the company's net profit for the year.

Consequently, the Net Margin compressed sharply to 1.36% in FY25 from 6.39% in the preceding year, indicating that high taxation and the decline in other income significantly eroded the profit earned from core operations.

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