Karachi: Century Paper & Board Mills Limited (CPBM) has presented its annual report for the financial year ended June 30, 2024, detailing a challenging year marked by economic instability but mitigated by strategic adjustments. The company’s financial statements, audited by external auditors, reveal a downturn in production and sales but a commendable adherence to quality and corporate responsibility.
The year 2024 commenced under the strains of high inflation and a volatile exchange rate, with Pakistan facing a significant economic downturn. According to information available from the Pakistan Stock Exchange (PSX), the stabilization measures including the IMF stand-by agreement and support from international allies have marginally stabilized the economy. The State Bank of Pakistan’s monetary policies eventually led to a slight economic recovery, with a GDP growth of 2.4%, a significant improvement from the previous year’s contraction of 0.29%.
For CPBM, the economic conditions impacted the demand for paper and board products significantly. The company reported a decline in production volumes to 179,964 metric tons from the previous year’s 196,192 metric tons, with a corresponding drop in capacity utilization from 74% to 68%. Sales volumes also saw a decrease, leading to a 12% reduction in net sales, totaling Rs. 42.00 billion.
The fiscal adjustments, while necessary, led to a net profit after tax of Rs. 524 million, down 42% from Rs. 905 million in 2023. The decrease in sales volumes and the challenges posed by cheaper imported goods and competition from the unorganized sector were the primary drivers behind this decline.
Despite these hurdles, CPBM continued its commitment to maintaining high standards in operations, focusing on environmental protection, employee well-being, and community support. The company’s efforts in empowering women and providing educational opportunities for underprivileged children were highlighted as part of their ongoing corporate social responsibility initiatives.
Financially, CPBM managed to reduce its borrowings from Rs. 10,804 million to Rs. 9,826 million. This was achieved through effective cash management and stringent control over working capital levels, allowing the company to navigate through the high-interest rate environment more effectively.
The company’s market capitalization reflected the broader market trends, with the PSX reaching new highs during the year. CPBM’s share price experienced fluctuations but ended the year at Rs. 29.95 per share, translating to a market capitalization of Rs. 12,031 million.
In conclusion, while Century Paper & Board Mills faced numerous challenges in FY 2024, its strategic management of resources and commitment to corporate social responsibility helped mitigate some of the economic impacts. The company remains focused on navigating the uncertain economic climate and improving its financial standing in the coming years.