Agritech Limited reports increased loss for Q1 2025

April 23, 2025 (MLN): Agritech Limited (PSX: AGL) has reported a net loss of Rs238.43 million for the three-month period ended March 31, 2025, compared to a loss of Rs172.69m in the same period last year.

Loss per share (LPS) worsened from Rs0.41 in Q1 2024 to Rs0.56 in Q1 2025, highlighting continued financial pressures on the business.

The decline in performance was driven by lower revenues, higher operational costs, and subdued gross margins.

Net sales dropped 18.36% to Rs7.54bn in Q1 2025 from Rs9.24bn in the corresponding period of 2024, primarily due to lower business volumes or pricing pressures.

Cost of sales decreased by 12.40% to Rs6.66bn, but the decline in revenue outpaced the cost reduction, resulting in a sharp 46.12% fall in gross profit to Rs880.22m.

Operating expenses significantly impacted profitability. Selling and distribution expenses surged 42.80% to Rs346.31m, while administrative and general expenses rose 36.30% to Rs226.48m.

Although there were no reported other expenses this quarter, the total operating expenses still climbed 39.77%.

On the brighter side, other income showed a modest growth of 9.81%, reaching Rs416.39m.

These factors combined led to an operating profit of Rs723.82m, a significant turnaround from an operating profit of Rs1.6bn in Q1 2024.

However, the gains were offset by persistently high finance costs, which amounted to Rs1.02bn though this was an improvement of 41.54% from the Rs1.75bn recorded last year.

Pre-tax losses widened by 37.87% to Rs426.2m from Rs309.14m a year ago. Final and minimum taxes fell 21.62% to Rs126.51m, while taxation income rose 37.62% to Rs187.78m.

Despite the tax credit, AGL closed the quarter with a net loss of Rs238.43m, reflecting a 38.06% increase in losses compared to the same quarter of the previous year.

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