NML’s profits take a u-turn, posts Rs2bn loss

February 28, 2025 (MLN): Nishat Mills Limited (PSX: NML) reported a net loss of Rs2.14 billion [LPS: Rs2.24] for the half-year ended December 31, 2024, compared to a profit of Rs5.96bn [EPS: Rs13.72] in the same period last year (SPLY).

The company's revenue increased by 1.76% to Rs104.66bn, compared to Rs102.84bn in SPLY.

However, the cost of sales also grew by 2.17%, leading to a slight decline of 0.35% in gross profit, which stood at Rs16.63bn.

On the expense side, distribution costs and administrative expenses surged by 18.47% and 14.63% YoY, respectively.

Other expenses saw a significant increase of 3,791.56%, rising to Rs4.92bn from Rs126.38m in SPLY. Consequently, total expenses jumped 78.29% to Rs13.98bn.

Profit from operations declined by 70.02% to Rs2.65bn, while other income increased by 21.53% to Rs3.63bn.

Despite this, profit from operations after other income dropped by 46.94% YoY to Rs6.28bn.

The finance cost fell by 8.99% YoY to Rs4.87bn.

However, net finance income plummeted by 78.22% to Rs1.41bn.

The share of net profit from associates turned negative, recording a loss of Rs129.18m against a profit of Rs1.67bn in SPLY.

Profit before taxation and levy declined by 84.27% to Rs1.28bn, and after accounting for a 27.52% reduction in levies to Rs1.26bn, the company reported a negligible pre-tax profit of Rs22.46m, marking a staggering 99.65% decline.

Taxation surged by 371.79% to Rs2.16bn, dragging the company into a net loss of Rs2.14bn.

The loss attributable to equity holders stood at Rs788.86m, compared to a profit of Rs4.82bn in SPLY, while non-controlling interest accounted for a loss of Rs1.35bn against a profit of Rs1.13bn in SPLY.

This decline resulted in a loss per share (LPS) of Rs2.24, compared to an EPS of Rs13.72 in SPLY.

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