⚡ Flash Summary

Olympia Mills Limited’s financial results for the year ended June 30, 2025, reveal a substantial increase in net profit after taxation, soaring from PKR 19.73 million in 2024 to PKR 145.90 million in 2025. This impressive growth is primarily fueled by a significant gain on the extinguishment of debt, contributing to a notable rise in operating profit. Despite the strong bottom-line performance, the company’s total liabilities remain high, although slightly decreased year-over-year, requiring close monitoring. The board has announced no cash dividend, bonus shares, or right shares for the fiscal year.

📌 Key Takeaways

• 🚀 Net profit after taxation surged to PKR 145.90 million in 2025, a significant jump from PKR 19.73 million in 2024.
• 💰 Earnings per share (EPS) increased dramatically from PKR 1.64 in 2024 to PKR 12.16 in 2025.
• 📈 Operating profit grew substantially from PKR 44.12 million in 2024 to PKR 163.61 million in 2025.
• ✨ The company recorded a gain on the extinguishment of debt of PKR 119.89 million.
• 📉 Finance costs decreased from PKR 5.95 million in 2024 to PKR 3.08 million in 2025.
• ⚠️ Total liabilities decreased slightly from PKR 671.36 million in 2024 to PKR 433.81 million in 2025.
• 💼 Revenue reserves improved from a deficit of PKR 675.18 million in 2024 to a deficit of PKR 529.69 million in 2025.
• 🚫 No cash dividend, bonus shares, or right shares were announced for the year ended June 30, 2025.
• 🏢 The Annual General Meeting is scheduled for October 27, 2025.
• 💸 Cash and bank balances decreased from PKR 10.41 million in 2024 to PKR 2.07 million in 2025.
• 📊 Short-term borrowings decreased from PKR 420.45 million to PKR 331.40 million.
• 🌱 Trade and other payables increased from PKR 95.40 million to PKR 99.68 million.
• 🏭 Investment property decreased slightly from PKR 617.99 million to PKR 612.34 million.
• ✔️ Total equity and liabilities decreased from PKR 709.86 million to PKR 703.08 million.

🎯 Investment Thesis

BUY. The significant increase in profitability, driven by the debt extinguishment and reduced finance costs, warrants a positive outlook. However, the decreased cash balance and reliance on a one-time gain need to be considered. Price target is PKR 150, with a medium-term horizon (12-18 months), contingent on maintaining profitability and improving cash flow.