April 30, 2026 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) swung to a loss after taxation of Rs118.21m for the nine months ended March 31, 2026, compared to a profit of Rs2.33bn in the corresponding period last year, showing a significant deterioration in the overall earnings base.
The company's basic and diluted earnings per share (EPS) turned negative to Rs0.16 loss per share, reversing a profit of Rs3.14 per share in 9MFY25, reflecting meaningful value erosion for shareholders during the period.
GATM's net sales declined 10.39% to Rs125.31bn from Rs139.84bn. Cost of sales contracted at a lesser pace of 8.13% to Rs108.26bn, failing to fully absorb the revenue shortfall.
This resulted in gross profit contracting by 22.49% to Rs17.05bn from Rs22.00bn, compressing the earnings foundation from the outset.
Selling and distribution costs declined marginally by 1.16% to Rs7.95bn while administrative costs rose a contained 3.96% to Rs5.21bn.
Other operating costs declined sharply by 58.26% to Rs162.34m, providing some relief. Despite this, operating profit declined by 46.04% to Rs5.35bn from Rs9.91bn.
Other income grew 19.25% to Rs1.62bn, partially cushioning the operational decline.
Finance costs declined by 25.94% to Rs4.61bn from Rs6.22bn, providing a meaningful tailwind. However, profit before levies and income tax still contracted sharply by 79.94% to Rs740.17m from Rs3.69bn.
A levy reversal of Rs313.83m, compared to a charge of Rs1.31bn in the prior year, provided critical relief and lifted profit before income tax to Rs1.05bn, a 55.71% decline from Rs2.38bn.
The decisive bottom-line driver, however, was a taxation charge of Rs1.17bn against a marginal charge of Rs53.47m in the prior year, which entirely wiped out pre-tax earnings and pushed the company into a net loss position.
After accounting for taxation, Gul Ahmed Textile Mills Limited closed the nine-month period with a loss after taxation of Rs118.21m, compared to a profit of Rs2.33bn reported in the corresponding period of last year.
|
STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTH ENDED MARCH 31, 2026 (Rs.000) |
|||
|
Description |
2026 |
2025 |
Change (%) |
|
Sales - net |
125,309,414 |
139,836,792 |
-10.39% |
|
Cost of sales |
(108,257,451) |
(117,836,212) |
-8.13% |
|
Gross profit |
17,051,963 |
22,000,580 |
-22.49% |
|
Selling and distribution cost |
(7,951,326) |
(8,044,934) |
-1.16% |
|
Administrative cost |
(5,212,083) |
(5,013,622) |
3.96% |
|
Other operating cost |
(162,343) |
(388,980) |
-58.26% |
|
Operating Expenses (Total) |
(13,325,752) |
(13,447,536) |
-0.91% |
|
3,726,211 |
8,553,044 |
-56.43% |
|
|
Other income |
1,623,823 |
1,361,670 |
19.25% |
|
Operating profit |
5,350,034 |
9,914,714 |
-46.04% |
|
Finance cost |
(4,609,861) |
(6,224,508) |
-25.94% |
|
Profit before levies and income tax |
740,173 |
3,690,206 |
-79.94% |
|
Levies |
313,827 |
(1,310,329) |
|
|
Profit before income tax |
1,054,000 |
2,379,877 |
-55.71% |
|
Taxation |
(1,172,210) |
(53,473) |
2092.15% |
|
Profit (Loss) after taxation |
(118,210) |
2,326,404 |
|
|
Earnings per share - basic and diluted (Rs.) |
(0.16) |
3.14 |
|