Towellers sees 49% drop in quarterly earnings

October 29, 2025 (MLN): Towellers Limited (PSX: TOWL) has revealed its financial results for the quarter ended September 30, 2025, posting a sharp decline of 49% in profit after taxation, which fell to Rs90.5 million from Rs177.8m in the same period last year.

The company’s earnings per share (EPS) also dropped 49%, coming down to Rs5.32 from Rs10.46 a year earlier.

Net Sales witnessed a notable contraction of 23.83%, amounting to Rs2.77bn compared to Rs3.63bn in the corresponding period last year, reflecting weaker demand and pricing pressures in export and local markets.

A 25.33% reduction in Cost of Sales partially offset the impact, yet Gross Profit decreased 13.74% to Rs406.3m from Rs471.0m previously.

On the expense side, Distribution Cost fell 19.73% to Rs101.3m, while Administrative Expenses also decreased 22.11% to Rs128.2m, showcasing effective cost management despite lower sales volumes.

However, Other Income recorded a steep decline of 62.84%, slipping to Rs24.6m, contributing to an overall drop in profitability. Meanwhile, Finance Cost increased by 8.33% to Rs7.3m, further pressuring the bottom line.

As a result, Profit from Operations contracted 34.86% to Rs187.8m, and Profit before Taxation declined 40.06% to Rs140.5m.

After accounting for Income Tax Expenses of Rs50.0m, down 11.69%, the company closed the quarter with a Profit after Taxation of Rs90.5 million, marking a 49% year-on-year decline.

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