Agritech Limited Posts Significant Losses in First Half of 2024 Despite Increased Sales

Lahore: Agritech Limited has reported substantial financial losses in its first half of 2024, underscoring a challenging period despite a rise in sales. The company’s Board of Directors confirmed in a meeting on August 16, 2024, that no dividends, bonus shares, or rights shares will be distributed.

According to information available from the Pakistan Stock Exchange (PSX), the Lahore-based Agritech Limited disclosed its half-year financial results ending June 30, 2024. The company’s sales saw a notable increase from the previous year, totaling 14.31 billion rupees in 2024, up from 5.58 billion rupees in 2023 during the same period. Despite this revenue boost, Agritech faced a significant financial downturn with a loss after taxation amounting to 1.24 billion rupees compared to a loss of 2.87 billion rupees in the previous year.

The detailed financial breakdown reveals escalating costs have eroded the gains from increased sales. The cost of sales climbed to 11.96 billion rupees, while selling and distribution expenses, along with administrative and general expenses, accounted for another 817 million rupees. The company managed to generate 678.80 million rupees in other income, yet this was insufficient to cover the substantial finance costs of 3.47 billion rupees, which outstripped the previous year’s figures.

Moreover, Agritech reported a loss per share that slightly improved to -2.91 rupees from -6.75 rupees in the prior year, indicating some mitigation in the per-share loss severity.

Agritech Limited’s financial report will be further detailed in PUCARS, submitted separately within the designated timeframe, offering more insight into the company’s fiscal strategies and operational challenges in this period.

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