Bata Pakistan Limited has reported a significant deterioration in its financial performance for the year ended December 31, 2025, posting a net loss of Rs2.39 billion compared with a profit of Rs850.73 million in the previous year.

According to the company’s financial statements, Bata Pakistan’s revenue from contracts with customers declined to Rs17.78 billion in 2025 from Rs18.33 billion in 2024, reflecting a relatively modest contraction in sales. However, the company’s profitability came under much stronger pressure as costs and other charges weighed heavily on its bottom line.

Gross Profit Falls Sharply

The company’s cost of sales increased to Rs10.76 billion during 2025 from Rs9.32 billion a year earlier. As a result, gross profit dropped to Rs7.02 billion from Rs9.01 billion, representing a decline of around 22%.

The weaker gross profit indicates that the pressure on Bata Pakistan was not limited to lower sales. The increase in the cost base significantly squeezed margins during the year.

Distribution costs remained broadly stable at Rs5.60 billion, compared with Rs5.29 billion in 2024. However, administrative expenses rose sharply to Rs2.44 billion from Rs1.89 billion.

Another major setback came from impairment losses on financial assets, which increased substantially to Rs651.81 million from only Rs35.01 million in the preceding year.

Company Moves Into Heavy Loss

Bata Pakistan reported a loss before taxation and levy of Rs2.51 billion in 2025, compared with a profit before taxation of Rs1.38 billion in 2024.

After accounting for a minimum tax levy of Rs246.07 million, the company recorded a loss before income tax of Rs2.75 billion. The financial statements show an income tax credit of Rs368.69 million, which reduced the final loss for the year to Rs2.39 billion.

In contrast, Bata Pakistan had earned Rs850.73 million in profit during 2024.

The company’s loss per share consequently stood at Rs315.48 for 2025, compared with earnings per share of Rs112.53 in the previous year.

Balance Sheet Also Shows Changes

Bata Pakistan’s total assets stood at Rs13.59 billion at the end of 2025, down from Rs14.80 billion at the end of 2024.

The company’s cash and bank balances, however, improved considerably to Rs983.75 million from Rs544.34 million. Trade debts also declined to Rs370.05 million from Rs1.15 billion, while stock-in-trade fell to Rs3.99 billion from Rs6.00 billion.

On the liabilities side, trade and other payables increased to Rs5.07 billion from Rs4.24 billion. The company also reported lease liabilities of Rs4.45 billion in total, including current and non-current portions.

Operating Cash Flow Improves

Despite the reported loss, Bata Pakistan generated a positive net cash inflow from operating activities of Rs2.46 billion during 2025, compared with an operating cash outflow of Rs128.25 million in 2024.

The company spent Rs708.18 million on property, plant and equipment during the year, while net cash outflow from investing activities stood at Rs652.77 million.

Financing activities resulted in a net cash outflow of Rs1.03 billion, largely reflecting lease-related payments and other financing obligations.

Overall, cash and cash equivalents increased by Rs772.99 million during 2025, reaching Rs983.75 million at year-end from Rs211.34 million at the beginning of the year.

No Dividend Recommended

The company’s April 24, 2026 filing also states that the Board recommended no cash dividend, bonus shares, right shares or other entitlement for the year ended December 31, 2025.

Bata Pakistan said its Annual General Meeting is scheduled for May 25, 2026, at the company’s registered office in Batapur, Lahore.

Outlook

Bata Pakistan’s 2025 results highlight the challenges facing the company, with relatively moderate pressure on revenue turning into a much larger decline in profitability. Higher cost of sales, increased administrative expenses and a substantial impairment charge all contributed to the swing from profit to loss.

At the same time, the improvement in operating cash generation and year-end cash position provides some financial support as the company works to address the pressures reflected in its latest results.