Karachi: Pak Agro Packaging Limited, listed on the GEM board, reported record quarterly sales for the first quarter of 2025, despite ongoing economic difficulties affecting the agricultural sector. The company's directors shared the financial performance for the nine-month period ending March 31, 2025, indicating a significant increase in sales revenue over the comparable periods of the previous financial year.
The company, primarily serving the agricultural sector, experienced a 32.7% increase in sales revenue in the first quarter of 2025 compared to the same quarter the previous year. This increase marked the highest sales in any quarter of the company's history, with revenue reaching Rs 274.20 million. The directors expressed cautious optimism about crossing the one billion rupees mark in sales by the end of the financial year, attributing the growth to the stabilization of the Pak rupee and the company's strategic focus on balancing its production capacities.
However, the profitability of Pak Agro Packaging Limited remains below target due to the persistent economic challenges faced by farmers and the proliferation of smaller companies offering lower-quality products. The company's gross profit margin for the quarter under review was slightly below the margin recorded in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company's total sales for the nine-month period were Rs 736.50 million, with a gross profit of Rs 93.40 million. The directors acknowledged that international prices of raw materials such as HDPE and colors have continued to rise, impacting the cost of production. Despite these challenges, the company's fish net manufacturing plant has significantly contributed to sales volumes, helping to offset reduced sales to the agriculture sector.
In response to the constrained forex situation, Pak Agro Packaging Limited increased its stock levels, leading to higher financial expenses for the quarter ending March 31, 2025. Nonetheless, the company recorded a decrease in total current assets by the end of the three quarters of the current financial year. The directors highlighted a profit before tax of Rs 49.80 million and a profit after tax of Rs 33.33 million, representing a substantial increase over the comparable period of the last financial year.
The directors concluded by expressing gratitude to employees and business associates for their support during the challenging nine-month period. The company's outlook remains cautious, with expectations for a modest recovery in the agricultural sector and continued efforts to meet annual sales targets.