Karachi: Pakistan Paper Products Limited has disclosed its financial results for the first quarter ended September 30, 2024, with a notable decrease in profitability compared to the previous year. According to information available from the Pakistan Stock Exchange (PSX), the company's latest filing highlights a contraction in both gross profit and net profit amidst steady operational costs.

In the first quarter of 2024, Pakistan Paper Products Limited reported a gross profit of PKR 61.45 million, down from PKR 87.70 million in the same quarter of the previous year. This decline is primarily attributed to a decrease in net sales, which fell to PKR 364.54 million from PKR 443.61 million year-on-year. The cost of sales also saw a reduction, totaling PKR 303.09 million compared to PKR 355.91 million, indicating a tightening of operational efficiency despite reduced revenue.

The operating profit followed this downward trend, settling at PKR 38.64 million, a significant drop from the previous year's PKR 66.14 million. This was compounded by an elevated finance cost which, although reduced to PKR 11.73 million from PKR 21.62 million, still impacts the bottom line. The company's profit before taxation stood at PKR 26.92 million, down from PKR 44.58 million recorded in the corresponding quarter of 2023.

Net profit for the quarter amounted to PKR 12.72 million, a sharp decline from PKR 32.70 million, with earnings per share also decreasing to PKR 1.59 from PKR 4.09. The Board of Directors, in its meeting, recommended no interim cash dividend, bonus shares, right shares, or any other entitlement, signaling a cautious approach to shareholder distribution amid financial tightening.

The company's condensed interim financial statements will be transmitted to the PSX electronically through PUCARS and will also be available on the Pakistan Paper Products website. Additionally, hard copies will be submitted to the Securities and Exchange Commission of Pakistan, fulfilling regulatory requirements.