Artistic Denim Mills Posts Rs435.8 Million Annual Loss Despite Improved Operating Profit

Artistic Denim Mills Limited has reported a net loss of Rs435.8 million for the financial year ended June 30, 2026, according to its financial results submitted to the Pakistan Stock Exchange.

The company’s Board of Directors met on September 24, 2026, and recommended no cash dividend, bonus shares or right shares for shareholders for the year under review.

Revenue declines during FY2026

Artistic Denim Mills recorded turnover of approximately Rs13.90 billion during FY2026, compared with Rs18.35 billion in FY2025. Despite the lower revenue, gross profit increased to Rs1.13 billion from Rs1.06 billion a year earlier.

Distribution costs fell to Rs379.2 million from Rs486.0 million, while administrative expenses were broadly stable at Rs283.4 million compared with Rs286.6 million in the previous year.

Other income also declined significantly, falling to Rs67.7 million from Rs212.2 million.

As a result, operating profit stood at Rs530.3 million, slightly higher than the Rs497.9 million recorded in FY2025. However, finance costs increased to Rs821.1 million, compared with Rs706.8 million in the previous year, putting pressure on the company’s bottom line.

Net loss remains substantial

The company reported a loss before levies and income tax of Rs290.8 million for FY2026. After levies of Rs145.0 million, the loss after income tax came to Rs435.8 million.

The net loss improved moderately from the Rs451.1 million loss recorded in FY2025. Loss per share also improved to Rs5.19, compared with Rs5.37 in the previous year.

The company also reported an actuarial gain of Rs68.4 million under other comprehensive income. Consequently, total comprehensive loss for FY2026 stood at Rs367.4 million, compared with Rs345.7 million in FY2025.

Financial position and cash flows

At June 30, 2026, Artistic Denim Mills had total assets of approximately Rs23.10 billion, compared with Rs24.49 billion a year earlier. Current assets stood at Rs12.57 billion, while non-current assets amounted to Rs10.54 billion.

The company’s total equity and reserves stood at approximately Rs7.30 billion, compared with Rs7.67 billion in FY2025. Long-term financing increased to Rs3.95 billion from Rs2.17 billion, while short-term borrowings declined to Rs8.76 billion from Rs10.32 billion.

Cash flow also remained under pressure. The company reported net cash used in operating activities of Rs288.8 million, although this was an improvement from the Rs2.20 billion operating cash outflow recorded in FY2025.

Net cash used in investing activities was Rs280.4 million, while financing activities generated Rs181.3 million. Overall, cash and cash equivalents declined by Rs387.9 million during the year, leaving the company with Rs208.0 million in cash and cash equivalents at June 30, 2026.

AGM and board elections

The company has scheduled its Annual General Meeting for October 28, 2026 at 4:00 p.m. at Dewan University in Karachi. The Board has proposed that the number of directors for the next three-year term be fixed at seven.

The share transfer books will remain closed from October 20 to October 28, 2026, with transfers received by October 19 being treated as timely for purposes of attending the meeting.

The company said its annual report for the year ended June 30, 2026 would be transmitted through PUCARS at least 21 days before the AGM.

Conclusion

Artistic Denim Mills’ FY2026 results show a mixed financial picture. While turnover fell considerably, the company managed to improve its gross and operating profit and reduce its annual net loss compared with the previous year. At the same time, higher finance costs, lower other income and continued cash-flow pressure remained key features of the year’s financial performance.

The company has recommended no dividend or other shareholder entitlement for FY2026, while shareholders will meet on October 28 to consider the company’s financial results and other matters.