October 27, 2025 (MLN): Treet Battery Limited (PSX: TBL) reported a loss after tax of Rs118m for the three months ended September 30, 2025, widening 7.3 times from a loss of Rs16.2m in the corresponding quarter last year.

Loss per share increased 10 times to Rs0.11 compared to Rs0.01 in 3MFY24.

Net sales declined 21% YoY to Rs1.87bn from Rs2.35bn, reflecting weaker demand during the quarter. Cost of sales decreased 16% to Rs1.57bn from Rs1.87bn.

Gross profit contracted 38% to Rs295.9m against Rs479.3m in 3MFY24, with the gross margin declining to 15.8% from 20.4% in the prior year quarter, indicating margin compression despite lower production costs.

Administration and general expenses increased 12% to Rs34.2m from Rs30.5m, while selling and distribution expenses rose 29% to Rs259.9m from Rs202.0m last year.

The company recorded an operating profit of Rs1.7m, down 99% from Rs246.8m in 3MFY24.

Other expenses declined 42% to Rs1.6m from Rs2.8m in the previous year. Finance costs decreased 58% to Rs115.8m from Rs272.8m, providing some relief to the bottom line. Other income declined 38% to Rs24m from Rs37m last year.

Loss/profit before levies and income tax stood at a loss of Rs91.7m compared to a profit of Rs10.2m in 3MFY24. Levies declined 17% to Rs26.3m from Rs31.6m.

Loss before income tax widened 4.5 times to Rs118m from Rs21.4m in 3MFY24. Taxation reflected a reversal of Rs5.3m in 3MFY24, which was absent in the current quarter.

The company concluded 3MFY25 with a loss for the year of Rs118m. The widening loss was driven by a sharp decline in sales, compressed gross margins, and significantly higher selling and distribution expenses, partially offset by substantially lower finance costs.