Karachi: The First Treet Manufacturing Modaraba has reported its financial performance for the first quarter of the fiscal year 2026-27, revealing mixed outcomes amid a challenging economic landscape in Pakistan. The report, released on October 30, 2026, highlights the Modaraba's resilience in its Corrugated Packaging segment, while acknowledging pressures in its Soap segment.
Pakistan's economy remained relatively stable during the quarter ending September 30, 2026, despite facing inflationary pressures and external uncertainties. The average Consumer Price Index (CPI) inflation rose to 10.2% compared to 4.3% in the same period last year, affecting consumer purchasing power. Nevertheless, the Pak Rupee showed stability against the U.S. dollar and the State Bank of Pakistan maintained its policy rate at 11.5%.
The Modaraba's overall operating profit saw a significant increase of 14.9%, reaching Rs. 75.7 million, compared to Rs. 65.8 million in the corresponding period the previous year. However, profit after taxation declined by 6.0% to Rs. 64.1 million, attributed to lower other income during the quarter. According to information available from the Pakistan Stock Exchange (PSX), these figures reflect a moderate move in operating profit and a minor move in net profit after taxation.
The Modaraba operates in two primary business segments: Corrugated Boxes and Soaps. The Corrugated Packaging segment reported robust growth, with sales revenue increasing by 19% in value and 12% in quantity, driven by strategic cost optimization and market focus. The segment's gross profit rose by 38.5%, attributed to effective cost-saving strategies and a reduction in paper prices.
Conversely, the Soap segment experienced a decline in revenue, although the Modaraba's overall sales revenue for the quarter increased by 10.7% to Rs. 1,214.6 million, a very large or significant move compared to Rs. 1,097.4 million in the same period last year.
The Directors' Review emphasized the Modaraba's commitment to optimizing resources and maintaining operational excellence to sustain its growth. As part of its strategic priorities, the Corrugated Packaging segment aims to balance product quality and operational efficiency, focusing on retaining key clients and acquiring new high-value customers.
The Modaraba remains committed to navigating the economic challenges and sustaining its positive momentum, ensuring continued growth and value for its stakeholders in the designated market category.