After rough 2024, Archroma Pakistan sees return to profitability this year

Volume growth, coupled with discipline on cost control, allows the chemical manufacturer to get back in black

Archroma Pakistan has begun to turn the page on a punishing 2024. After posting a loss per share of Rs15.9 in the financial year 2024, Archroma has swung back into profit during 2025, with earnings per share of Rs8.0 in the third quarter alone, versus a loss per share of Rs5.3 in the same quarter last year, according to a briefing note issued by Chase Securities, a brokerage firm based in Karachi. The contrast is stark: the company moved from red ink in 2024 to a clearly profitable run-rate mid-2025, aided by stronger margins and a noticeable pick-up in sales.

The anatomy of that recovery is laid out in the same table. Net sales rose 44% year on year in the June quarter of 2025, while gross margin climbed from 15.8% in the prior-year quarter to 24.7% – an almost nine-percentage-point improvement that turned operating losses into operating profit. Finance costs also eased and other income grew, together pushing the bottom line back into positive territory.

That quarterly resurgence follows a bruising full year: in 2024, net sales fell 17%, gross profit fell 40%, and operating profit dropped 83% compared with 2023. The same side-by-side on page 2 captures how the downshift in volumes and mix during 2024 compressed profitability, even before higher overheads and finance costs took their toll. Against that low base, the June quarter of 2025 stands out as the clearest signal yet that Archroma’s operational reset – leaner costs, a sharper commercial focus on dyes, and regained share in a key product line – is gaining traction.

 

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