Artistic Denim Mills limited reported profit per share of PKR 3.95 in FY24 against a profit per share of PKR PKR 12.63 in FY23, a decrease of 69%.
Furthermore, in 1QFY25 the company reported profit per share of PKR 0.06 against PKR 2.09 in SPLY. The company has experienced a decline in its gross margin this year, primarily due to increased energy and finance costs.
Despite this reduction in profitability, the company, as a publicly listed entity, has continued its tradition of regular dividend payments. Export sales account for 95% of the company’s total revenue, with the remaining 5% derived from domestic sales.
The company’s fiber recycling project has become operational and is expected to contribute positively to profitability in the coming year. The company is facing significant challenges, including reduced cotton yields and a decline in production.
Looking ahead, the company has initiated Phase 1 of its sustainability efforts, which involves the development of a 3 MW solar plant that should be operational by February 2025. This is part of a broader plan to meet the company’s total energy requirement of 7 MW.
Important Disclosures
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