October 29, 2025 (MLN): Gillette Pakistan Limited (PSX: GLPL) reported a loss after tax of Rs112.5m for the quarter ended September 30, 2025, a sharp reversal from a profit of Rs3.84m in the corresponding period last year.

Earning/(loss) per share stood at Rs3.53 compared to earnings per share of Rs0.12 in SPLY.

Revenue from contract with customers declined marginally by 0.1% year-on-year to Rs473.8m from Rs474.1m, reflecting relatively flat sales during the year. Cost of goods sold increased 25% to Rs399.3m from Rs318.9m.

Gross profit contracted 52% to Rs74.53m against Rs155.18m, with the gross margin declining sharply to 15.7% from 32.7% in the prior year, indicating severe margin compression due to substantially higher production costs.

Selling, marketing and distribution expenses declined 6% to Rs24.18m from Rs25.83m, while administrative expenses decreased 40% to Rs25.61m from Rs42.61m. Other operating expenses surged 6.7 times to Rs82.28m from Rs10.72m last year.

Interest expense declined 89% to Rs8.05m from Rs70.22m in the previous year, providing significant relief. Other income declined 89% to Rs2.74m from Rs24.12m in SPLY.

The company concluded 1QFY26 with a loss for the period of Rs112.5m, delivering a net profit margin of -23.7% compared to 0.8% in 1QFY25.

The loss was driven by a dramatic 52% collapse in gross profit due to surging cost of goods sold, a 6.7-fold increase in other operating expenses, and an 89% decline in other income, which overwhelmed the benefits from substantially lower interest expense and administrative cost reductions, marking a significant deterioration in operational performance.