Avanceon Posts 68% Profit Decline in FY2025, Announces 10% Final Cash Dividend

Avanceon Limited Posts Sharp Decline in FY2025 Earnings, Declares 10% Final Dividend

Lahore: Avanceon Limited has reported a significant decline in profitability for the financial year ended December 31, 2025, despite maintaining a strong revenue base. The company also announced a final cash dividend of Rs. 1 per share (10%), reflecting management’s confidence in returning value to shareholders.

According to the financial results approved by the Board of Directors, the group’s net revenue stood at Rs. 15.89 billion, slightly lower than Rs. 16.16 billion recorded in the previous year. Gross profit also edged down to Rs. 4.16 billion from Rs. 4.26 billion in FY2024.

However, the company’s bottom line came under considerable pressure. Net profit after tax attributable to shareholders dropped to Rs. 647.37 million, compared to Rs. 2.01 billion a year earlier, representing a decline of nearly 68%. Consequently, earnings per share (EPS) fell to Rs. 1.51, down sharply from Rs. 5.11 in FY2024.

The decline in profitability was primarily driven by higher operating expenses and finance costs. Administrative and selling expenses increased to Rs. 2.72 billion, while finance costs rose to Rs. 512.86 million during the year. In addition, other operating expenses more than doubled to Rs. 483.30 million, weighing heavily on operating performance.

Operating profit decreased to Rs. 1.31 billion, compared with Rs. 1.76 billion in the previous year. Profit before taxation also declined to Rs. 654.86 million, reflecting the challenging operating environment.

On the balance sheet, Avanceon continued to strengthen its financial position, with total assets increasing to Rs. 30.33 billion from Rs. 28.16 billion a year earlier. Shareholders’ equity also improved to Rs. 15.62 billion, supported by retained earnings and exchange revaluation reserves.

The Board of Directors recommended a final cash dividend of Rs. 1 per share (10%), while announcing no bonus shares, right shares, or any other corporate action. The company’s Annual General Meeting (AGM) is scheduled to be held on May 23, 2026, in Lahore. Shareholders whose names appear on the register as of May 15, 2026, will be eligible for the dividend.

Despite the notable decline in earnings during FY2025, Avanceon maintained its dividend payout, signaling management’s confidence in the company’s long-term business outlook and financial stability as it continues to execute automation and digital transformation projects across regional markets.