Softlogic Holdings (SHL.N0000) Q1 2025 earnings summary

Executive summary

• Revenue for the quarter ended 30 June 2024 was Rs. 24.13 billion, up 1% year-over-year, but the group reported a net loss of Rs. 2.62 billion, a 41% improvement from the prior year’s Rs. 4.46 billion loss.

• Gross profit increased 2% year-over-year to Rs. 8.14 billion, while operating profit declined 26% to Rs. 460 million.

• Total comprehensive loss for the period was Rs. 2.32 billion, a 30% improvement from the previous year.

Financial highlights

• Finance income rose 41% year-over-year to Rs. 3.01 billion, while finance expenses dropped 33% to Rs. 3.82 billion.

• Net finance cost improved significantly, down 77% year-over-year to Rs. 813 million.

• Basic loss per share for the quarter was Rs. 2.98, compared to Rs. 4.05 in the same period last year.

• Cash and cash equivalents at quarter-end stood at Rs. 6.26 billion, up from Rs. 643.7 million a year ago.

Outlook and guidance

• The group is pursuing a rights issue to raise up to Rs. 10 billion by March 2025, with shareholder approval obtained.

• Odel PLC, a subsidiary, also announced a rights issue of 272.1 million shares at Rs. 12.50 per share.