Karachi: Pakistan Paper Products Limited (PPPL) has reported a decline in turnover for the nine-month period ending March 31, 2025, falling to Rs 1.423 billion from Rs 1.575 billion in the same period last year. The company, which operates within the Ex-Books segment, faced substantial competition, impacting its financial figures across the board.
The decline in turnover resulted in a 26.72% decrease in gross profit (GP), which fell to Rs 219.54 million. Net profit (NP) before tax also saw a decrease of 23.07%, amounting to Rs 117.35 million, while net profit after tax declined by 21.70%, reaching Rs 88.10 million, down from Rs 112.51 million in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), PPPL has managed to address the decline in exercise book sales through a strategic reduction in prices, which has bolstered market sales. However, selling old inventory at lower prices has impacted profit margins. Despite these challenges, the company has retained its large institutional orders, achieving economies of scale and better margins.
The market for Pro Labels remained steady in rupee terms, with a slight increase in volume. Inflationary pressures have affected consumer behavior, reducing purchases of non-essential items and leading to a decline in sales for fast-moving consumer goods (FMCG) companies. However, increased demand from oil lubricants and pharmaceuticals has helped maintain revenue levels.
Sales of plain paper and sensitized paper continued to decline, prompting PPPL to cease the sale of plain paper due to market volatility and insufficient volumes. The company remains optimistic about its future outlook, with both business lines performing well and exercise book sales showing rapid growth in the current season.
PPPL's management expressed gratitude towards its customers, financial institutions, suppliers, and staff for their continued support and cooperation. The company aims to sustain its performance and deliver improved results by the end of the fiscal year.