Karachi: Roshan Packages Limited has reported a downturn in its financial performance for the half-year period ending December 31, 2024. The company's net sales revenue decreased to Rs. 4.56 billion, a 15.7% decline from the Rs. 5.41 billion reported in the corresponding period of the previous year. The reduction in sales has been attributed to subdued market demand and competitive pricing strategies.
The company's gross profit fell to Rs. 357 million from Rs. 447 million in the previous year, a decline influenced by rising input costs and inflationary pressures. Operating profit also decreased from Rs. 218.05 million last year to Rs. 159.80 million this year. Despite these challenges, finance costs were reduced from Rs. 165.57 million to Rs. 87.76 million, contributing to a profit before tax of Rs. 113.54 million, down from Rs. 175.90 million in the corresponding period last year.
Profit after tax was reported at Rs. 73.80 million, a decrease from Rs. 111.55 million in the previous year. The earnings per share (EPS) for the period declined to Rs. 0.52 per share from Rs. 0.79 per share in the prior year.
According to information available from the Pakistan Stock Exchange (PSX), the company has maintained a focus on cost optimization and expansion into sustainable packaging solutions as part of its forward-looking strategy. This strategic shift aims to counteract the effects of input cost inflation and enhance long-term growth prospects.
The company is optimistic about the future, highlighting the importance of national structural reforms, economic stability, and the continuity of the International Monetary Fund (IMF) program in driving consumer demand. Roshan Packages Limited is dedicated to operational efficiency, market leadership, and long-term value creation.
In terms of liabilities, the company has reported trade and other payables amounting to Rs. 1.60 billion, compared to Rs. 1.89 billion as of June 30, 2024. Short-term borrowings, both conventional and Islamic, have increased, with a total of Rs. 1.21 billion reported at the end of the period.
The company's investment in its subsidiary, Roshan Sun Tao Paper Mills (Private) Limited, reflects its strategic focus on vertical integration and reducing reliance on external procurement. The subsidiary is set to commence operations within two years, following the construction of its plant and the procurement of necessary machinery.
Roshan Packages Limited continues to explore emerging sectors and potential export markets to ensure sustainable growth. With a sanctioned credit limit of Rs. 3.95 billion, the company has an unutilized credit facility of Rs. 2.15 billion as of the reporting period.
The directors expressed gratitude to shareholders, customers, suppliers, and employees for their continued support, acknowledging the hard work and dedication of the company's management and staff.