Interloop Limited posts consolidated earnings of Rs5.6bn

KARACHI: Interloop Limited (ILP) — the world’s largest socks exporter based in Faisalabad with Puma, Nike and H&M among its big clients — announced its FY25 results on Wednesday, posting consolidated earnings of Rs5.6 billion (EPS: Rs3.96), a 66 per cent decline year-on-year (YoY), though still higher than industry expectations, according to Topline Securities.

The company reported a 4QFY25 consolidated profit of Rs2.6 billion (EPS: Rs1.88), up 5 per cent YoY and 79 per cent quarter-on-quarter (QoQ), driven by stronger-than-expected gross margins.

Alongside the results, ILP declared a final dividend of Rs1/share for 4QFY25, in line with expectations (payout ratio: 29 per cent).

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Net sales for FY25 rose 13 per cent YoY to Rs179 billion. In 4QFY25, sales increased 11 per cent YoY and 13 per cent QoQ to Rs48.9 billion, supported by seasonal demand.

Gross margins for FY25 declined to 20 per cent from 28 per cent in FY24. In 4QFY25, margins stood at 22 per cent versus 22 per cent in 4QFY24 and 20 per cent in 3QFY25.

The effective tax rate surged to 38 per cent in FY25 (1.92 per cent of turnover) compared to 11 per cent in FY24 (1.29 per cent of turnover). In 4QFY25, the effective tax rate stood at 38 per cent (3.35 per cent of turnover) versus 16 per cent in 4QFY24 (1.04 per cent of turnover) and 30 per cent in 3QFY25 (1.50 per cent of turnover).

Distribution expenses rose 21 per cent YoY to Rs7 billion in FY25, while administrative expenses increased 18 per cent YoY to Rs10.7 billion. Other expenses dropped 56 per cent YoY to Rs948 million, in line with the operating profit trend.

Other income fell 65 per cent YoY to Rs534 million in FY25. Finance costs eased 6 per cent YoY to Rs9.6 billion, reflecting lower interest rates compared to FY24, the report noted.