Karachi: Siddiqsons Tinplate Ltd (STPL) has reported a significant decline in its net sales for the fiscal year 2024-25, with figures standing at PKR 2.023 billion, marking a 50% decrease from the previous year. The company, however, recorded a gross profit of Rs. 221.78 million, a stark improvement from the Rs. 55 million gross loss reported in the prior year, translating to a 500% increase.

The annual report, dated January 7, 2026, highlights that STPL's operational performance showed marked improvement despite a 3% reduction in capacity utilization. The annual production was recorded at 5,600 metric tons, down from 8,335 metric tons the previous year. This decline in production was chiefly attributed to weakening domestic demand for tinplate, driven by the growing preference for galvalume and secondary tinplate due to their lower costs. Additionally, many consumers have shifted towards alternative packaging solutions such as plastic pouches and PET bottles.

According to information available from the Pakistan Stock Exchange (PSX), the company's EBITDA, excluding non-recurring items, was reported at Rs. (229.8) million for FY 2024-25, compared to Rs. (1,997.2) million in the previous fiscal year. The previous year's losses were largely due to operational disruptions from political unrest and the discontinuation of the CRM Project. In the first quarter of FY 2024-25, the management's focus on stabilizing operations and restructuring the business model resulted in minimal production activity. However, post-restructuring, operations gradually resumed, placing STPL on a more stable trajectory.

Finance costs, however, continued to impact profitability heavily. The elevated discount rates, with KIBOR at historically high levels, coupled with interest on borrowings from the discontinued CRM project, contributed to a total finance cost of Rs. 382.9 million. The majority of this cost was directly related to CRM-associated borrowing.

STPL's profit and loss account for the period ended June 30, 2025, showed a loss before tax of Rs. (229.828) million and a loss after tax of Rs. (255.116) million. The earnings per share recorded a negative value of (1.11), highlighting the financial challenges faced by the company.

Despite these challenges, the management remains focused on cost efficiency and ensuring long-term sustainability. The company is now better positioned following its restructuring efforts, aiming to navigate the evolving market landscape effectively.