Karachi: The Board of Directors of Treet Corporation Limited has released its Directors' Report along with the un-audited financial statements for the first quarter ending September 30, 2026. The report highlights a robust performance in the company's core business despite facing significant macroeconomic challenges.
The economic landscape in Pakistan during the first quarter of 2026 was marked by stability, yet inflationary pressures persisted, with average CPI inflation rising to 10.2% from 4.3% in the previous year. Despite these hurdles, Treet Corporation Limited demonstrated resilience, achieving an 11.7% increase in net revenue, rising from PKR 3,683 million to PKR 4,113 million, driven by domestic market growth.
According to information available from the Pakistan Stock Exchange (PSX), the company's domestic revenue surged by 12.0%, attributable to a 6.4% increase in volumes, a favorable sales mix, and strategic commercial execution. However, export volumes declined by 14.4% due to geopolitical tensions and shipping disruptions in the Middle East, although export revenue still rose by 11.8%, reflecting a shift towards higher-value products.
The company's profitability saw a significant improvement, with gross profit increasing by 28.6% to PKR 1,766 million, up from PKR 1,373 million, and gross margins improving from 37.3% to 42.9%. Operating profit also saw a substantial rise of 43.6%, reaching PKR 754 million, compared to PKR 525 million in the previous year. Profit before tax increased by 13.1% to PKR 658 million, with profit after tax rising from PKR 382 million to PKR 393 million.
The Group's consolidated results showed improved profitability despite mixed performances across various segments. Group turnover slightly decreased by 1.2% to PKR 6,899 million. Nonetheless, gross profit increased by 12.6% to PKR 2,125 million, with operating profit rising by 17.9% to PKR 733 million.
Treet Battery Limited, however, faced challenges with a 30.5% decline in net sales to PKR 1,301 million, attributed to inflation and consumer shifts towards cheaper products. The company's net loss widened to PKR 195 million from PKR 118 million.
First Treet Manufacturing Modaraba recorded growth in sales revenue and operating profit, although net profit slightly decreased. Treet Renacon Pharma Limited experienced a decline in net sales by 4.5% to PKR 323.95 million, with a net loss of PKR 68.86 million, primarily due to reduced exports and higher costs.
Looking forward, Treet Corporation remains focused on sustaining domestic momentum while transforming its export operations towards sustainable growth. The company's strategic initiatives, including expansion into international channels and strengthening its brand portfolio, are expected to support future performance.