Ghani Glass feels the heat as profits melt by 15%

February 25, 2025 (MLN): Ghani Glass Limited (PSX: GHGL) has reported a 15% decrease in its net profit for the half-year ended December 31, 2024, with earnings after taxation standing at Rs2.7 billion, compared to Rs3.2bn in the same period last year.

The company’s earnings per share (EPS) dropped to Rs2.74 from Rs3.22 in the corresponding period of 2023.

The decline in profitability was primarily driven by a 10.5% reduction in revenue from contracts with customers, which fell to Rs22bn from Rs24.5bn in the prior year period.

This was accompanied by an 11.7% drop in the cost of sales, which amounted to Rs16bn.

Consequently, the gross profit declined by 7% to Rs6bn from Rs6.5bn.

Ghani Glass saw mixed movements in its expense categories. While selling and distribution expenses decreased by 6.6% to Rs1.4bn, general and administrative expenses rose by 5.7% to Rs1.2bn.

Other expenses also declined by 10.7%, amounting to Rs267.6 million.

However, a lower exchange loss of R43mn, down 51% from Rs89mn, helped mitigate the impact on operational profitability.

Other income declined by 29.5% to Rs83mn.

Profit from operations stood at Rs3.2bn, marking an 11% decline from Rs3.6bn in the previous year.

Finance costs surged by 32.7% to Rs61.2mn, while the company’s share of profit from its investment in an associate dropped significantly by 37% to Rs315.2mn.

Consequently, profit before tax fell by 13.6% to Rs3.4bn, while taxation expenses decreased by 8.3% to Rs702.2mn.

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