Gul Ahmed’s profits take a stitch in time, dropping 6%

February 25, 2025 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) has reported a net profit of Rs1 billion for the half-year ended December 2024, reflecting a 6% decline compared to Rs1.1bn recorded in the same period last year.

The company’s earnings per share (EPS) stood at Rs1.38, down from Rs1.47 in the corresponding period of 2023.

The company’s net sales grew by 13% year-over-year, reaching Rs94bn, up from Rs84bn in the previous year.

However, the increase in the cost of sales, which rose by 15.4% to Rs81bn, resulted in only a marginal increase of 0.4% in gross profit, which stood at Rs13.5bn.

Operating expenses also saw a rise, with other operating costs increasing by 10.8% to Rs8.8bn.

Despite a 26.7% rise in other income to Rs1.1bn, the company’s operating profit declined by 8.7%, amounting to Rs5.8bn.

Finance costs remained nearly unchanged at Rs4bn, putting additional pressure on profitability.

As a result, the company’s profit before income tax fell sharply by 45.6% to Rs738 million.

However, a reversal in taxation, amounting to Rs283mn, provided some relief, cushioning the decline in net earnings.

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