Agritech Limited (PSX: AGL) posted a net profit of Rs2.24 billion for the six-month period ending June 30, 2025, reversing a net loss of Rs1.24 billion in the same period last year. This marked a significant financial turnaround for the company.
Earnings per share (EPS) rose to Rs3.74 from a loss per share of Rs2.06, driven by strong other income and significantly reduced finance costs.
Net sales declined by 7.67%, reaching Rs13.21 billion, down from Rs14.31 billion in the corresponding period last year. The cost of sales dropped by 6.96% to Rs11.13 billion, but the reduction was not enough to protect margins, resulting in an 11.30% decline in gross profit, which stood at Rs2.08 billion.
The company experienced a sharp increase in expenses, with selling and distribution expenses more than doubling, up by 130.43% to Rs924.35 million. Administrative costs also rose by 11.87% to Rs465.32 million. Other expenses saw an unusual surge to Rs524.89 million, compared to just Rs1.19 million last year, driving total operating expenses up by 133.98% to Rs1.91 billion.
On a positive note, other income surged by 614.45%, reaching Rs4.85 billion, which played a key role in supporting the bottom line. As a result, operating profit increased by 127.27% to Rs5.02 billion, compared to Rs2.21 billion in the same period last year.
Finance costs decreased by 41.75% to Rs2.02 billion, further improving pre-tax profitability. Consequently, the company reported a profit before taxes of Rs2.99 billion, a stark contrast to the loss of Rs1.27 billion in H1 FY24.
Despite a 266.55% increase in final and minimum taxes, the company closed the period with a net profit of Rs2.24 billion, marking a strong recovery.
