State Trading Organisation (STO) has reported a net profit of MVR 169 million for the first quarter of the current fiscal year, despite a decline in profitability compared to the same period last year.

Financial statements released by the company show that revenue for the quarter reached MVR 4.02 billion, marking a 4.6 per cent increase from the MVR 3.84 billion recorded in the final quarter of the previous fiscal year. The growth was driven by higher oil sales, along with stronger performance in general trading, healthcare, and construction materials.

However, the increase in revenue did not translate into higher profits. Operating profit fell to MVR 263 million, down from MVR 300 million in the previous quarter and MVR 308 million in the corresponding quarter of the previous year. The net profit of MVR 169 million represents a 13.5 percent decline from the MVR 195 million earned in the first quarter of last year.

The company attributed the drop in profitability to stabilising global oil prices and rising operational costs, which affected margins across its business lines. Nonetheless, STO noted that overall performance remained within expected levels.

STO, one of the Maldives’ largest state-owned enterprises, is a key player in sectors such as fuel supply, pharmaceuticals, construction materials, and catering services. Its financial performance is closely tied to global market trends and domestic economic activity.