Agritech Limited (PSX: AGL) has reported a strong turnaround in its financial performance for the year ended December 31, 2025, posting a profit after taxation of Rs2.89 billion, compared to a loss of Rs1.11 billion recorded in the previous year. The return to profitability marks a significant recovery for the agribusiness company after a challenging 2024 and reflects a combination of higher sales volumes, lower finance costs, and a substantial increase in other income. Earnings per share also moved back into positive territory, standing at Rs5.36 for the year, compared to a loss per share of Rs2.71 in the previous period.
According to the company financial statement, Agritech net sales increased by 14.6 percent year on year to Rs35.88 billion, up from Rs31.31 billion in 2024. The growth in revenue was attributed to improved sales volumes during the year, indicating stronger demand for the company products. However, rising input costs weighed on margins, as cost of sales increased by 19.2 percent to Rs29.84 billion. As a result, gross profit declined by 3.6 percent to Rs6.04 billion, compared to Rs6.27 billion in the previous year, reflecting pressure on gross margins despite higher turnover.
Operating expenses also rose sharply during the year, further impacting operating performance. Selling and distribution expenses more than doubled, increasing by 104.4 percent year on year to Rs2.42 billion, while administrative and general expenses rose 18.8 percent to Rs973.3 million. The higher expense base led to a significant decline in operating profit, which fell by 37.9 percent to Rs2.64 billion from Rs4.26 billion recorded in 2024. Other expenses also increased by 38.5 percent to Rs567.99 million, adding further pressure at the operating level. These cost increases offset much of the benefit from higher sales, highlighting challenges in managing operating efficiency amid inflationary conditions.
Despite the weaker operating performance, non operating factors played a key role in driving the overall profitability turnaround. Finance costs declined sharply by 39.6 percent year on year to Rs4.24 billion, compared to Rs7.01 billion in the previous year, providing significant relief to the bottom line. In addition, other income surged by 153.2 percent to Rs5.27 billion, up from Rs2.08 billion in 2024. The substantial increase in other income helped offset the decline in operating profit and higher expenses, supporting a return to positive earnings before taxation.
As a result of these combined factors, Agritech Limited reported a profit before taxation of Rs3.11 billion for 2025, compared to a loss of Rs1.70 billion in the previous year. After accounting for a tax charge of Rs214.48 million, the company closed the year with a net profit of Rs2.89 billion. The improvement in earnings underscores the importance of financial restructuring and income diversification in stabilizing the company performance during the year. While margin pressures and rising operating costs remain evident, the lower finance burden and stronger non core income streams enabled Agritech to reverse losses and restore profitability in 2025.
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