Karachi: Leiner Pak Gelatine Limited, a prominent player in the gelatine market, has reported a significant downturn in its financial performance for the three-month period ending September 30, 2024. The company's latest financial statements reveal a turnover of Rs. 250.56 million, a substantial drop from Rs. 699.93 million recorded in the corresponding period last year.

During the recent quarter, Leiner Pak Gelatine experienced a marked decline in both domestic and export markets. According to information available from the Pakistan Stock Exchange (PSX), this downturn is largely attributed to the global economic slowdown and the adjustment of inventory levels by international buyers to pre-pandemic norms, which heavily impacted gelatine exports. Additionally, the local market has been adversely affected by a significant rise in the consumer price index, leading to reduced demand and lower gelatine prices.

The sluggish business activity has not only impacted the company's sales but has also significantly affected its profitability. The profit after tax for the period stood at a mere Rs. 4.46 million, a stark contrast to the Rs. 14.04 million achieved during the same period last year.

Looking ahead, the directors of Leiner Pak Gelatine remain hopeful that the export business will regain momentum as foreign buyers stabilize their inventory levels. The company acknowledges the ongoing efforts of its employees and business partners, who continue to support the firm through these challenging economic conditions.