Agritech Limited (PSX: AGL) has announced a significant financial turnaround for the calendar year ended December 31, 2025. The company posted a profit after taxation of Rs2.89 billion, a complete reversal from a loss of Rs1.11 billion in the previous year (CY24).
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Earnings per share (EPS) turned positive at Rs5.36, compared to a loss per share of Rs2.71 in CY24.
Financial Performance Highlights:
- Revenue Growth but Margin Pressure: The company’s net sales increased by 14.6% year-on-year (YoY) to Rs35.88 billion. However, the cost of sales grew at a faster rate of 19.2%, leading to a 3.6% decline in gross profit to Rs6.04 billion. Operating profit fell sharply by 37.9% to Rs2.64 billion, pressured by a doubling of selling and distribution expenses.
- Non-Operational Gains Drive Turnaround: The return to profitability was driven by two major factors outside of core operations:
- A 153.2% surge in other income to Rs5.27 billion.
- A significant 39.6% reduction in finance costs to Rs4.24 billion.
- Overall Result: These non-operational gains more than offset the pressures in its core agricultural business, resulting in a profit before tax of Rs3.11 billion, compared to a loss of Rs1.70 billion in CY24.
Condensed Statement of Profit or Loss (CY 2025 vs. CY 2024)
| Description | CY 2025 | CY 2024 | Change |
|---|---|---|---|
| Net Sales | Rs 35.88 bn | Rs 31.31 bn | +14.6% |
| Gross Profit | Rs 6.04 bn | Rs 6.27 bn | -3.6% |
| Operating Profit | Rs 2.64 bn | Rs 4.26 bn | -37.9% |
| Profit/(Loss) Before Tax | Rs 3.11 bn | (Rs 1.70 bn) | Turnaround |
| Profit/(Loss) After Tax | Rs 2.89 bn | (Rs 1.11 bn) | Turnaround |
| Earnings/(Loss) Per Share (PKR) | 5.36 | (2.71) | Turnaround |
The results highlight a year where Agritech Limited successfully navigated operational cost pressures through substantial non-operational income and lower finance costs, achieving a decisive return to profitability.
