Stylers International profits take a knock, drop 28% YoY

February 26, 2025 (MLN): Stylers International Limited (PSX: STYLERS) released its profit and loss statement for the half-year ended December 31, 2024, reporting a profit after tax of Rs509.69 million [EPS: Rs1.05], down from Rs706.67mn [EPS: Rs1.63] in the same period last year (SPLY), reflecting a 27.87% YoY decline.

The company’s revenue showed significant growth, with net sales rising by 66.38% YoY to Rs10.06 billion from Rs6.05bn in SPLY.

However, the cost of sales also increased sharply by 79.28% YoY to Rs8.32bn, which limited the gross profit growth to 23.82% YoY, standing at Rs1.74bn in H2FY25.

The company faced a substantial rise in distribution costs, which surged by 109.60% YoY to Rs501.85mn, while administrative expenses also saw an 18.40% YoY increase, reaching Rs271.11mn.

On the other hand, other expenses fell by 47.90% YoY to Rs80.65mn, providing some relief.

Other income, however, declined by 25.13% YoY to Rs114.49mn compared to Rs152.93mn in SPLY.

Meanwhile, financial and other charges increased by 57.81% YoY, reaching Rs181.04mn, primarily due to higher borrowing costs.

Despite a 7.07% YoY increase in operating profit, which stood at Rs1bn, the taxation expense surged significantly by 860.49% YoY to Rs311.61mn, which adversely impacted the bottom line.

As a result, the profit before income tax grew by 11.12% YoY to Rs821.30mn.

However, the significant rise in taxation led to a net profit after tax decline of 27.87% YoY.

Consequently, the earnings per share (EPS) dropped from Rs1.63 in SPLY to Rs1.05 in H2FY25, reflecting a decrease of 35.58%.

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