Karachi: Pak Agro Packaging Limited, listed under the GEM category, has reported a record-high sales revenue for the quarter ended March 31, 2025, despite ongoing economic challenges affecting the agricultural sector, according to the company's directors' report. The quarter's sales reached 274.20 million rupees, marking a significant milestone in the company's history.

The financial report, released on March 31, 2025, highlights a 32.7% increase in quarterly sales revenue compared to the same period last year, and a 22.8% rise over the comparable nine-month period of the previous financial year. Despite this growth, the company acknowledged that its profitability remains below target due to persistent economic difficulties faced by farmers and the proliferation of substandard products by smaller competitors.

The directors emphasized the impact of stable Pak rupee values, which have helped maintain steady prices for imported raw materials. However, the international price increase of key raw materials such as HDPE and colors, coupled with a depressed agricultural market, has impeded the company's ability to fully transfer these costs to customers.

According to information available from the Pakistan Stock Exchange (PSX), Pak Agro Packaging Limited's total sales for the nine months stood at 736.50 million rupees, with a gross profit of 93.40 million rupees. The company's gross profit margin for the reviewed quarter was reported at 12.68%, slightly down from the 12.9% recorded in the same quarter of the previous year.

The company has attributed its sustained sales revenue to a significant contribution from its fish net manufacturing plant, which has compensated for the reduced sales to the agricultural sector. The addition of certain back process machines has also enhanced production capabilities, particularly for green shades and fish nets.

Pak Agro Packaging Limited reported a profit before tax of 49.80 million rupees and a profit after tax of 33.33 million rupees for the nine months ending March 31, 2025. This represents a 47.8% increase in profit after tax over the comparable period of the last financial year. Despite these positive figures, the company has experienced a significant increase in stock levels and current borrowings due to forex constraints, impacting financial expenses for the quarter.

The directors expressed cautious optimism for the future, anticipating that a potential rise in demand from farmers, along with seasonal and economic factors, could help the company meet its annual sales target. The directors also extended gratitude to employees and business associates for their cooperation throughout the financial period.