Biafo Industries reports 57% decline in 1HFY25 profit to Rs132mn

February 20, 2025 (MLN): Biafo Industries Limited (PSX: BIFO) has reported a significant decline in profitability for 1HFY25, with net profit plunging by 57% to Rs132 million, compared to Rs309mn in the same period last year.

BIFO’s earnings per share (EPS) for the period plummeted to Rs2.85 from Rs6.66 in the previous year.

The decline in earnings was primarily driven by an 11% drop in net revenue and a sharp rise in income tax expense.

The company’s revenue for 1HFY25 stood at Rs1.2 billion, down from Rs1.4bn in the corresponding period of the previous year.

The decline in sales was accompanied by a 10.2% increase in the cost of sales, which rose to Rs825.5mn, leading to a 36.2% reduction in gross profit, which settled at Rs400mn.

Despite a 42.6% increase in other income, Biafo Industries faced mounting administrative expenses, which surged by 8.1% to Rs118mn.

However, distribution expenses saw a slight decline of 1.88% to Rs36mn.

Meanwhile, the company significantly reduced its net impairment losses on financial assets, bringing them down by 90.1% to Rs8.90mn.

Operating profit for the period dropped by 38%, reaching Rs247.6mn compared to Rs398.2mn in 1HFY24.

On the financial front, the company managed to cut finance costs by 63.5% to Rs22.7mn, while finance income improved slightly to Rs14.92mn.

As a result, net finance costs fell sharply by 83.7% to Rs7.7mn. Profit before tax saw a 29.5% decline, amounting to Rs222.7mn.

However, a staggering 1182% rise in income tax expense, which surged to Rs90.6mn, further weighed on net profit.

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