Crescent Fibres Limited Reports Declining Sales and Losses Through 2025
Crescent Fibres Limited (PSX: CFL) has experienced a sharp decline in sales and profitability from 2023 to 2025, culminating in a net loss of Rs.775.7 million in 2025. The company’s yarn business has struggled with weak demand, leading to reduced capacity utilization and mounting losses.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
CFL’s declining sales, mounting losses, and rising leverage negatively affect the textile sector; avoid buying CFL shares.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- TextileNegatively affected
Companies
Companies Mentioned
- CFL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Textile — Negative · Do not buy. PSX tickers: CFL. CFL’s declining sales, mounting losses, and rising leverage negatively affect the textile sector; avoid buying CFL shares.
Full Story
Open on Business Recorder## Overview
Crescent Fibres Limited (CFL) is a public limited company listed on the Pakistan Stock Exchange (PSX) that manufactures and sells yarn. The company was incorporated in 1977 and has a diversified shareholder base, with the local general public holding 48.45 % of the shares.
Financial Performance
### 2021‑2022
CFL saw a rebound in 2021 after the COVID‑19 pandemic, with net sales rising 21.25 % to Rs.6,091 million and a net profit of Rs.454 million. The company’s gross profit margin improved from 7.95 % in 2020 to 13.86 % in 2021, and operating profit margin climbed to 11.63 %. In 2022, net sales grew 32.95 % to Rs.8,098 million, and net profit increased to Rs.655 million, reflecting higher sales volume and prices.
### 2023
The first year of decline after the pandemic, 2023 saw a 15.44 % drop in net sales to Rs.6,848 million. Gross profit margin collapsed to 0.43 %, and the company posted a net loss of Rs.375 million. The loss was driven by weak demand, high fixed‑cost exposure, and a significant rise in finance costs.
### 2024
Net sales fell another 5.08 % to Rs.6,500 million, and the company recorded a net loss of Rs.758 million. Gross loss of Rs.249 million and a 31 % gearing ratio highlighted liquidity pressures.
### 2025
Demand remained weak, leading to a 33.37 % decline in net sales to Rs.4,330 million. CFL reported a net loss of Rs.776 million, with a 45 % gearing ratio and a loss per share of Rs.62.47.
## Shareholder Structure
As of 30 June 2025, CFL had 12.418 million shares outstanding. The local public owned 48.45 %, directors and related parties 36.98 %, NIT & ICP 6.91 %, joint stock companies 4.72 %, and banks/DFIs/NBFIs 1.05 %.
## Market Impact
The sustained decline in sales and profitability signals a challenging environment for CFL’s yarn business. Investors should be cautious, as the company’s financial health deteriorates and its ability to service debt weakens.
## Conclusion
CFL’s trajectory from 2023 to 2025 reflects a persistent downturn in the yarn market, with significant losses and rising leverage. The company’s future performance will hinge on its ability to revive demand and manage costs.