Towellers Limited reports sharp 59% drop in profit after tax

April 28, 2025 (MLN): Towellers Limited (PSX: TOWL) profits dropped 59.18% YoY in the nine months ended March 31, 2025, with its profit after tax falling to Rs271.03 million (EPS: Rs15.94), compared to a profit of Rs663.95m (EPS: Rs35.58) in the same period last year.

In terms of revenue, the company saw a 6.13% YoY increase, with net sales reaching Rs9.78bn as compared to Rs9.21bn in the same period last year.

However, the cost of sales rose by 9.42% YoY, putting pressure on the company's gross profit, which fell by 16.74% YoY to Rs965.91m, compared to Rs1.16bn in SPLY.

As a result, the gross margin decreased significantly during the period.

Other operating income saw a sharp decline of 69.13% YoY, dropping to Rs112.5m from Rs364.47m in the previous year.

On the expense side, the company experienced an increase in distribution costs by 48.5% YoY, administrative expenses rose by 4.42% YoY, and finance costs increased by 67.29% YoY to Rs21.57m from Rs12.89m in SPLY.

In terms of tax, the company reported income tax expenses of Rs16.86m, contrasting with an income tax benefit of Rs162.73m in the same period last year.

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