Karachi: Tri-Pack Films Limited has released its directors' review report for the quarter ending March 31, 2025, detailing a mixed financial performance characterized by increased sales volumes and revenues but ultimately resulting in a net loss due to rising interest costs.
The company reported a 12% increase in sales volumes over the same period last year (SPLY), with growth observed in both domestic and export segments. This led to an 11% rise in revenue for the quarter. The improved performance was attributed to better efficiencies stemming from the new BOPP line 5 and enhanced pricing strategies, which contributed to a 16% improvement in gross profit margins compared to SPLY.
Despite these gains, Tri-Pack Films faced a 50% increase in operating profit over the previous year's figures. However, the rise in interest costs, primarily due to debt associated with the new BOPP Line 5, impacted the bottom line. These interest expenses have been fully accounted for in the profit and loss statement following the commissioning of the project on July 3, 2024, with no further capitalization.
According to information available from the Pakistan Stock Exchange (PSX), the company experienced a reduction in overall debt levels since December 2024, attributable to improved cash flows, which are evidenced by an increase of Rs. 2.2 billion in operating cash flows.
However, the financial strain from interest costs resulted in a loss before tax and levies of Rs. 92 million, a stark contrast to the Rs. 63 million profit reported in the same period last year. The net loss after tax stood at Rs. 21 million, compared to Rs. 12 million in the corresponding period last year.
The directors' report also highlighted concerns regarding tax anomalies related to import and export stage taxes and the withdrawal of exemptions under section 153 of the Income Tax Ordinance, 2001. These issues have been brought to the attention of revenue authorities and decision-makers.
Looking ahead, the company anticipates challenges with the introduction of another new BOPP line in the industry in 2025. However, Tri-Pack Films remains optimistic about the future, expecting profitability to stabilize in the coming years, supported by lower interest rates, expanding market demand, and growth in export markets.
The company expressed gratitude to its stakeholders for their continued support and trust during these challenging times.