Karachi: Century Paper and Board Mills Limited has released its un-audited financial results for the half-year ending December 31, 2024, indicating a significant decline in profits compared to the previous year. The results, approved by the Board of Directors at a meeting held on February 12, 2025, at the company’s registered office in Karachi, show a reduction in turnover and profit margins, reflecting challenges faced by the company in the current economic climate.
For the half-year ending December 31, 2024, the company reported a net turnover of 19.80 billion rupees, down from 22.08 billion rupees in the corresponding period of the previous year. This decline in turnover is attributed to various market factors impacting the paper and board industry. The cost of sales also decreased to 18.00 billion rupees from 20.02 billion rupees, resulting in a gross profit of 1.80 billion rupees, compared to 2.06 billion rupees in the previous year.
Despite efforts to control expenses, the company saw an increase in general and administrative expenses, which rose to 517.42 million rupees from 482.53 million rupees. Selling and distribution expenses also saw a slight increase, impacting the overall financial performance. Additionally, other operating charges, including contributions to the Workers’ Profit Participation Fund and Workers’ Welfare Fund, decreased, contributing to an operating profit of 1.33 billion rupees, down from 1.53 billion rupees in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Century Paper and Board Mills Limited’s finance costs remained relatively stable at 955.39 million rupees, compared to 947.92 million rupees in the previous year. This stability in finance costs was not enough to offset the overall decline in profitability, resulting in a profit before income tax and levy of 372.25 million rupees, a significant drop from 580.70 million rupees the previous year.
After accounting for taxation and other levies, the company’s profit for the period stood at 200.56 million rupees, a substantial decrease from 354.23 million rupees in the corresponding period of 2023. The earnings per share also declined to 0.50 rupees from 0.88 rupees in the previous year, reflecting the challenging conditions faced by the company.
In terms of cash flow, the company reported a net cash outflow from operating activities amounting to 2.04 billion rupees, a stark contrast to the 1.43 billion rupees generated in the same period last year. This was primarily due to increased finance costs, taxes paid, and other operational expenditures. Investing and financing activities also resulted in net cash outflows, further impacting the company’s cash position.
The company’s management remains focused on implementing strategic measures to navigate the current economic environment and improve financial performance in the coming periods. The half-yearly report has been transmitted through PUCARS and will be available for shareholders and stakeholders to review within the specified timeframe.