Karachi: Merit Packaging Limited's financial performance for the fiscal year ending June 30, 2024, reflects a resilience in the face of economic headwinds, according to the company’s annual report. Despite a challenging business environment and elevated financing costs, the company managed to increase revenue while facing profitability pressures.
The year ended June 30, 2024, posed significant challenges for Merit Packaging Limited, with Pakistan's GDP growing by only 2.38% and the large-scale manufacturing sector experiencing a slight decline. The paper and board sector, where the company operates, also saw a decrease. Inflation has somewhat eased to 24.5%, yet the high policy rate set by the State Bank of Pakistan continued to impact financing costs adversely. According to information available from the Pakistan Stock Exchange (PSX), global economic resilience and steady growth were noted despite conflicts and geopolitical tensions that threatened economic stability.
Financially, Merit Packaging Limited reported a revenue increase of 4.7%, reaching Rs. 6.64 billion. However, competition and rising input costs led to a reduction in operating profit, down from Rs. 278.75 million to Rs. 248.57 million. Finance costs also increased slightly from Rs. 344.28 million to Rs. 351.73 million, contributing to a net loss of Rs. 186.36 million, a marginal improvement from the previous year’s Rs. 189.91 million loss.
The Board of Directors at Merit Packaging played a vital role in steering the company through these turbulent times. They focused on critical risk areas, enhancing corporate governance, and driving strategic initiatives aimed at turning around the company’s fortunes. The board also completed its annual self-evaluation, ensuring compliance with the Code of Corporate Governance.
In acknowledging the efforts of various stakeholders, the Chairman expressed gratitude towards shareholders, customers, bankers, and staff for their support during challenging times. He also praised the Board, the CEO, and all company employees for their dedication and commitment to navigating the company through the fiscal challenges.
The company is optimistic about the future, particularly with the securing of an export order which is expected to be the beginning of a more focused exploration of international markets in the coming financial year. With strategic initiatives in place, there is a concerted effort towards improving production efficiency and reducing costs, which are anticipated to help the company achieve a financial turnaround soon.