Pace (Pakistan) swings to Rs528m loss in FY25

October 07, 2025 (MLN): Pace (Pakistan) Limited (PSX: PACE) reported a loss after tax of Rs528.4 million for the year ended June 30, 2025, a sharp reversal from a profit of Rs1.0bn in FY24.

Loss per share stood at Rs1.89 compared to earnings per share of Rs4.00 in the prior year.

Net sales declined 11.1% year-on-year to Rs1.58bn from Rs1.78bn, showing weaker demand, while the cost of revenue increased 12.1% to Rs1.46bn.

Consequently, gross profit plunged 74.5% to Rs121.7m against Rs476.9m in FY24, with the gross margin contracting sharply to 7.7% from 26.8% a year earlier.

Administrative and selling expenses rose 32.4% to Rs405.1m, while other expenses surged 413.1% to Rs61.2m. Other income dropped significantly by 61.9% to Rs80.4m from Rs210.9m last year.

As a result, the company recorded a loss from operations of Rs264.2m, compared to an operating profit of Rs369.9m in FY24.

Finance costs increased 21.4% to Rs318.3m. The company also reported an exchange loss on foreign currency convertible bonds of Rs95.1m, compared to a gain of Rs153.5m in the previous year.

Additionally, a gain from change in fair value of investment property of Rs5.5m was recorded, against a loss of Rs6.8m last year.

Notably, FY24 included one-off items such as a bargain purchase gain of Rs596.1m, share of loss from associate of Rs163.3m, and a deemed loss of Rs70.8m, which were absent in FY25.

Loss before income tax and minimum taxes stood at Rs663.4m versus a profit of Rs670.3m in FY24. Minimum tax decreased 43.6% to Rs14.6m, while taxation fell 58.9% to Rs149.6m.

The company concluded FY25 with a net loss of Rs528.4m, driven by compressed margins, higher operating expenses, and adverse foreign exchange movements.

Copyright Mettis Link News