International Knitwear Posts Rs16.04 Million Profit for FY2026, No Dividend Recommended

International Knitwear Limited has reported a decline in sales and profitability for the financial year ended June 30, 2026, according to its audited financial statements submitted to the Pakistan Stock Exchange. The company’s board has recommended no cash dividend, bonus shares or right shares for the year.

The company recorded net sales of Rs863.52 million during FY2026, compared with Rs1.21 billion in the previous financial year. Gross profit also declined to Rs99.57 million, from Rs106.36 million a year earlier. Despite the lower sales, the company remained profitable at the operating level, posting an operating profit of Rs55.98 million.

Profitability Comes Under Pressure

International Knitwear’s profit before income tax fell to Rs24.23 million, compared with Rs48.29 million in FY2025. After taxation, the company reported a profit of Rs16.04 million, down from Rs30.86 million in the preceding year.

This translated into earnings per share of Rs1.66, compared with Rs3.19 in FY2025. The decline indicates that the reduction in revenue and higher financial costs had a noticeable impact on the company’s bottom line.

Finance costs increased to approximately Rs39.62 million during the year from Rs29.44 million previously. This increase, alongside lower sales, contributed to the pressure on profit before tax.

Balance Sheet Shows Lower Asset Base

The company’s total assets stood at Rs611.20 million at June 30, 2026, compared with Rs811.36 million a year earlier. Current assets declined from Rs681.70 million to Rs475.83 million.

Trade debts were also reduced substantially, falling to around Rs202.13 million from Rs424.31 million. At the same time, short-term investments increased to approximately Rs49.66 million from Rs42.61 million.

On the liabilities side, short-term finance under mark-up arrangements declined to Rs243.82 million, compared with Rs402.87 million in FY2025. Creditors and other liabilities also decreased during the year.

Operating Cash Flow Turns Positive

One of the notable points in the financial statements is the improvement in operating cash flow. International Knitwear generated Rs182.73 million in net cash from operating activities during FY2026, compared with an outflow of Rs205.37 million in the previous year.

The company also recorded net cash used in investing activities of Rs14.74 million. Financing activities resulted in a net cash outflow of approximately Rs168.39 million, largely reflecting repayment of short-term financing and dividend payments.

Despite the positive operating cash generation, cash and cash equivalents at the end of the year stood at a negative Rs3.73 million, compared with negative Rs3.34 million at the end of FY2025.

No Dividend or Bonus Shares

For FY2026, the board has recommended no cash dividend, bonus shares or right shares. The recommendation will be placed before shareholders for approval.

The company has also announced that its 36th Annual General Meeting will be held on October 27, 2026, at the registered office in Karachi. The share transfer books will remain closed from October 20 to October 27, 2026, both days inclusive.

Overall Picture

International Knitwear’s FY2026 results present a mixed financial picture. Revenue and net profit were lower than the previous year, while finance costs remained elevated. However, the company maintained profitability and generated a significant positive operating cash flow during the year.

The financial statements show that the company’s focus will remain important on rebuilding sales, managing financing costs and maintaining cash generation. For shareholders, the upcoming annual general meeting will provide an opportunity to review the company’s financial performance and the board’s recommendations for the year ended June 30, 2026.