Biafo Industries' profit falls by 30% in nine-month period

April 24, 2025 (MLN): Biafo Industries Limited (PSX: BIFO) has reported a decline in profitability for the nine months ended March 31, 2025, with net profit dropping by 30.48% to Rs280.6 million, compared to Rs403.6m in the same period last year.

BIFO’s earnings per share (EPS) for the period decreased to Rs6.05 from Rs8.7 in the previous year, reflecting the decrease in profitability.

The decline in earnings was primarily driven by an increase in the cost of sales, which rose by 24.26%, reaching Rs1.43 billion, alongside a decrease in gross profit, which fell by 19.16% to Rs770.9m.

Despite a 41.15% increase in other income, the company faced higher distribution and administrative expenses, which rose by 30.67% and 11.57%, respectively.

Operating profit for the period saw a decrease of 9.48%, falling to Rs519.6m from Rs574m in the same period last year.

On the financial side, the company significantly reduced its finance costs by 63.43%, which dropped to Rs34.5m, while finance income decreased by 18.65% to Rs20.6m.

As a result, net finance costs saw a sharp reduction of 79.89%, dropping to Rs13.87m. Profit before tax increased marginally by 3.10% to Rs471.99m.

However, a substantial rise in income tax expense by 253.42%, which surged to Rs191.39m, significantly impacted the bottom line, contributing to the overall decline in net profit.

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