Faisalabad: Interloop Ltd. (ILP) recently conducted an analyst briefing to discuss its FY25 financial results and future outlook. The company's revenue increased by 11% year-over-year to PKR173 billion from PKR156 billion in the same period last year, while profitability fell by 66% to PKR5.4 billion, translating to earnings per share of PKR3.8.

The management attributed the drop in profitability to several factors, including losses from new capacities in the Apparel and Hosiery segments, higher input costs primarily related to salary expenses, and a shift from a final tax regime to a normal tax regime.

There was a positive outlook for the Denim segment, which is now out of losses, with expectations of further improvement in margins. In the Apparel segment, operational efficiencies are being pursued, with a breakeven target set for FY27.

Regionally, sales to the U.S. declined to 45% from 50% in the previous year. In contrast, sales to Europe increased to 45% from 39%, while sales to Asia and other regions decreased slightly to 10% from 11%.

Current selling prices stand at US$10 per unit for Hosiery, US$6.1 per dozen for Denim, and US$3.5 per unit for Apparel. The management anticipates a rise in Apparel prices due to a change in product mix.