Interloop reports 85% profit drop in H1 FY2024

February 19, 2025 (MLN): Interloop Limited (PSX, ILP) reported an 85% year-on-year decline in net profit for the half-year ended December 31, 2024.

The company's profit dropped to Rs1.48 billion, down from Rs9.86bn in the same period last year, primarily due to a significant rise in production costs and operating expenses.

Despite an 18.06% increase in net sales to Rs87.35bn, a sharp 36.82% rise in the cost of sales to Rs70.26bn squeezed profitability, leading to a 24.49% decline in gross profit to Rs17.08bn.

Operating expenses also increased, with distribution costs surging by 46.65% and administrative expenses rising by 16.14%, bringing total operating expenses to Rs9.45bn, up 16.11% year-on-year.

While other income grew by 71.44%, profit from operations fell by 47.68% to Rs8.2bn due to rising costs.

Finance costs also climbed by 15.94% to Rs5.56bn, further pressuring earnings.

Additionally, a steep 552.74% rise in income tax expenses to Rs153 million contributed to an 83.44% decline in pre-tax profit to Rs1.63bn.

Consequently, earnings per share (EPS) for H1 FY2024 dropped to Rs1.06, compared to Rs7.03 in the previous year, reflecting an 84.92% decrease.

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