Interloop Limited (PSX: ILP) has reported a significant decline in profit after tax for the fiscal year ending June 30, 2025, with earnings falling by 65.7% to Rs5.65 billion compared to Rs16.46 billion in FY24.
Despite the drop in profits, the company’s net sales showed an improvement, increasing by 13.4% year-on-year (YoY) to Rs179.4 billion, up from Rs158.2 billion last year.
However, the rise in the cost of sales by 25.1%, reaching Rs142.6 billion, impacted the company’s margins, leading to a 16.8% decrease in gross profit, which stood at Rs36.8 billion, compared to Rs44.2 billion in FY24.
Operating expenses also saw an uptick of 9.4%, rising to Rs18.6 billion. This increase was driven by a 20.6% rise in distribution costs to Rs7 billion and a 17.5% increase in administrative expenses, which reached Rs10.7 billion.
Other operating expenses dropped by 55.7% to Rs948 million, which helped mitigate some of the overall financial pressure.
The company recorded other income of Rs534 million, a decline of 20.3% YoY, and did not report any income from the acquisition of subsidiaries during FY25, compared to Rs857 million in the previous year.
Profit from operations fell by 34.9% to Rs18.6 billion from Rs28.6 billion in FY24. After accounting for finance costs of Rs9.56 billion (down 5.8% YoY), profit before tax and levies stood at Rs9.09 billion, a drop of 50.9%.
After taxation of Rs3.46 billion, Interloop concluded FY25 with a net profit of Rs5.65 billion, compared to Rs16.46 billion a year earlier, translating into earnings per share (EPS) of Rs3.96. This represents a significant decrease from the EPS of Rs11.78 in FY24.
The company’s overall performance reflects a challenging year marked by rising operational costs and pressure on profit margins despite growth in sales.
