QUICE 1QFY27 slips into red with Rs1m loss

November 03, 2026 (MLN): Quice Food Industries Limited (PSX: QUICE) slipped into the red for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), posting a net loss of Rs1m compared to a net profit of Rs3.54m in the corresponding period of the previous fiscal year.

Reflecting the bottom-line downturn, loss per share for the three-month period stood at Rs0.010, swinging from earnings per share of Rs0.036 recorded in 3MFY26.

The downturn was driven by a 17% drop in top-line net sales, which fell to Rs352.27m from Rs425.74m in the same period last year.

Cost of sales declined 16% to Rs288.74m (down from Rs343.01m), leading to a 23% contraction in gross profit to Rs63.52m compared to Rs82.73m in the comparative quarter.

Consequently, the company's gross profit margin contracted to 18.03% from 19.43% in 3MFY26.

On the operational side, the company implemented overhead rationalization, reducing distribution costs by 24% to Rs44.69m (down from Rs58.97m) while administrative expenses remained flat at Rs15.86m against Rs15.97m.

Total operating expenses dropped 19% to Rs60.55m compared to Rs74.95m.

However, lower gross profitability pushed operating profit down 62% to Rs2.97m compared to Rs7.78m in 3MFY26. Other income contracted 26% to Rs313,517 against Rs424,800 in the prior-year period.

Below the operating line, finance costs stood minimal at Rs19,638 (up 11% from Rs17,733), leaving profit before levies and taxation at Rs3.26m (down 60% from Rs8.19m).

However, statutory levies of Rs4.27m (down 8% from Rs4.65m) exceeded operating profits, causing the company to slip into a pre-tax and net loss of Rs1.00m with no corporate tax expense booked.

Looking forward, the company expects conditions to stay demanding as the Finance Division anticipates inflation to remain elevated in the near term, heavily dependent on international oil prices, while ongoing Middle East conflicts continue to pose risks to fuel costs, freight, and supply chains.

To navigate these headwinds, management plans to protect margins, reduce operating overheads, expand export footprint, and prioritize high-margin, value-added products to steer the business back to profitability.

Copyright Mettis Link News