Bannu Woollen Mills Reports Revenue Growth Amid Higher Annual Loss

Bannu Woollen Mills Limited (BWM) has reported a mixed financial performance for the year ended June 30, 2026, with a notable increase in sales and operating profit, while the company continued to record a net loss for the year.

According to the financial statements submitted to the Pakistan Stock Exchange, the company’s sales increased to approximately Rs1.295 billion in FY2026, compared with Rs968.556 million in the previous year. This represents growth of around 34%. Gross profit also improved to Rs335.726 million, compared with Rs272.221 million in FY2025.

Operating Performance Improves

Bannu Woollen Mills recorded profit from operations of Rs136.542 million during FY2026, compared with Rs97.622 million a year earlier. The improvement came despite higher distribution and administrative expenses.

The company’s finance cost declined to Rs52.192 million, compared with Rs68.333 million in FY2025. However, the financial statements show a loss from associated company investments of Rs89.976 million, compared with Rs196.423 million in the previous year.

As a result, the company reported a loss before income tax of Rs111.321 million, compared with Rs93.537 million in FY2025. After income tax and deferred tax adjustments, the loss for the year stood at Rs120.700 million, compared with Rs98.425 million in the preceding year. Loss per share increased to Rs12.70, compared with Rs10.35 previously.

Comprehensive Loss Affected by Revaluation Gains

The company’s total comprehensive income statement also reflected significant changes during the year. While Bannu Woollen Mills recorded a loss of Rs120.700 million for the year, other comprehensive income included a Rs233.087 million surplus arising from the revaluation of property, plant and equipment.

The financial statements also reported a Rs112.003 million surplus related to the revaluation of freehold land of an associated company. After accounting for other comprehensive items, total comprehensive loss was reported at Rs199.011 million, compared with Rs98.567 million in FY2025.

Asset Base Expands

The company’s total assets increased to approximately Rs4.164 billion as of June 30, 2026, compared with Rs3.851 billion a year earlier.

Non-current assets stood at around Rs2.827 billion, while current assets increased to approximately Rs1.337 billion from Rs1.258 billion. Shareholders’ equity also increased to around Rs3.233 billion, compared with Rs3.034 billion at the end of FY2025, largely reflecting changes in revaluation reserves.

Operating Cash Flow Remains Positive

Despite the reported annual loss, Bannu Woollen Mills generated positive cash flow from operations. Net cash generated from operating activities reached approximately Rs117.591 million during FY2026, compared with Rs111.150 million in FY2025.

The company invested Rs82.016 million in fixed capital expenditure during the year. Net cash used in investing activities amounted to Rs81.585 million, while financing activities resulted in a net cash outflow of Rs37.236 million. Cash and cash equivalents stood at approximately Rs2.012 million at the end of the year.

No Dividend Recommended

The company’s board meeting held on September 24, 2026, recommended no cash dividend, bonus shares or right shares for the year ended June 30, 2026. The company also reported no other entitlement or price-sensitive corporate action in the notice.

Bannu Woollen Mills has scheduled its Annual General Meeting for October 23, 2026, at 10:00 a.m. at its registered office on D.I. Khan Road, Bannu. The company’s share register will remain closed from October 16 to October 23, 2026, both days inclusive.

Outlook

The FY2026 results present a mixed picture for Bannu Woollen Mills. The company achieved substantial growth in sales and improved its operating performance, while lower finance costs and a reduced loss from associated-company investments also provided support. However, the company remained loss-making at the bottom line, with its annual loss increasing compared with FY2025.

The financial statements indicate that the company’s operating cash generation remained positive, while its balance sheet benefited from significant revaluation adjustments. Going forward, the company’s ability to translate stronger sales and operating performance into sustainable profitability will remain an important area for shareholders and market observers to watch.