Towellers Limited posts 49% profit decline in FY25 despite slight sales growth

September 29, 2025 (MLN): Towellers Limited (PSX: TOWL) has navigated a challenging fiscal year, with its financial results for the period ending June 30, 2025, revealing a significant contraction in profitability despite a marginal increase in sales.

The company's performance, which marks a notable downturn from the previous year, highlights the pressures of rising costs and their impact on the bottom line.

The figures underscore a period of strategic challenges that have tested the company's financial resilience.

According to the financial data, TOWL's net sales saw a slight increase of 0.26%, reaching Rs12.35bn in FY25, up from Rs12.31bn in FY24. However, this modest growth was outpaced by a steeper rise in the cost of sales, which increased by 0.96%.

While the gross profit declined by 6.01% to Rs1.16bn, the gross profit margin contracted to 9.38% in FY25 from 10.00% in FY24. This contraction was a key factor in the overall drop in profitability.

The company’s profit for the year after taxation also saw a sharp decline of 48.76%, dropping to Rs286.71m from Rs559.50m in the previous year.

This significant reduction in the bottom-line was primarily attributed to the higher proportional increase in operational expenses, including distribution and administration costs.

The company's earnings per share (EPS) also experienced a substantial decrease of 48.74%, falling to Rs16.87 in FY25 from Rs32.91 in the previous year.

This challenging performance, despite the company’s efforts, emphasizes the pressures faced by Towellers Limited in the current economic landscape.

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