⚡ Flash Summary

Gillette Pakistan Limited (GLPL) reported challenging financials for the year ended June 30, 2025. Revenue increased by 15% year-over-year, but the company experienced a net loss of PKR 25.95 million compared to a profit of PKR 101.94 million in the prior year. This decline in profitability was attributed to macroeconomic headwinds and increased import duties, impacting cost structures and consumer spending. The Board has decided not to pay a dividend for the year.

📌 Key Takeaways

• 📉 Revenue increased by 15% to PKR 1,719.85 million from PKR 1,502.01 million.
• ⚠️ Company reported a net loss of PKR 25.95 million compared to a profit of PKR 101.94 million in the previous year.
• ⛔ No dividend was declared for the year ended June 30, 2025.
• 😬 Gross Profit margin decreased significantly to 20% from 33%.
• 📉 Earnings per share (EPS) turned negative at (PKR 0.81) compared to positive PKR 3.18 in the previous year.
• 🔺 Selling, Marketing and Distribution expenses saw massive reduction.
• ✔️ Management states revenue growth was driven by expansion in retail, wholesale, and supermarket channels.
• ✔️ Company focused on driving revenue growth in disposables & double edge categories.
• ✔️ Company acknowledges challenges of rising global commodity prices.
• ✔️ Company express appreciation for shareholder confidence, supplier support and customer reliance.

🎯 Investment Thesis

Given the significant drop in profitability, negative EPS, and decision to withhold dividends, a SELL recommendation is warranted. The macroeconomic challenges and increasing costs present substantial headwinds. A turnaround strategy and significant improvements in cost management are needed before a more positive outlook can be considered.