Karachi: In a strategic move responding to market trends, Cheerat Packaging Limited has decided to sell one of its papersack production lines, as disclosed during the Board of Directors' meeting on August 22, 2024.

The company revealed that due to the cement industry's shift towards polypropylene bags, it will be divesting Papersack Line IV. However, Cheerat Packaging will continue to meet its papersack demands with Line III, which has a capacity of 55 million papersacks annually.

According to information available from the Pakistan Stock Exchange (PSX), this decision is part of a broader strategy to optimize operations in light of changing market demands. The board also declared a final cash dividend of Rs. 3.50 per share, amounting to 35%, in addition to an earlier interim dividend of Re. 1.00 per share.

Financially, Cheerat Packaging reported a net turnover of Rs. 13.82 billion for the fiscal year ended June 30, 2024, down from Rs. 16.55 billion the previous year. The decrease in turnover was paralleled by a reduction in cost of sales, leading to a gross profit of Rs. 1.46 billion, compared to Rs. 3.28 billion in 2023.

Operating profit for the year was Rs. 1.88 billion, down from Rs. 2.87 billion, impacted by lower other income and higher finance costs. Net profit for the year stood at Rs. 885.89 million, with basic and diluted earnings per share at Rs. 18.04, slightly down from Rs. 18.50 in the previous year.

The company's Annual General Meeting is scheduled for October 15, 2024, in Peshawar, with the share transfer books to be closed from October 8 to October 15, 2024.

This strategic realignment and financial overview underscore Cheerat Packaging's ongoing adjustments to its business operations in response to evolving industry conditions and market dynamics.