Lahore: First Treet Manufacturing Modaraba (FTMM) has reported a strong financial performance for the fiscal year ending June 30, 2024, driven by robust growth in its Soaps segment and steady performance in the corrugated packaging division. The company witnessed a substantial rise in revenue, gross profit, and operating profit, with notable year-over-year improvements across several key indicators.
According to the financial statements presented in the Directors' Report, FTMM recorded total revenue of Rs. 4,148.26 million, a 6% increase from the previous year's figure of Rs. 3,911.42 million. Gross profit surged by 19% to reach Rs. 361.58 million, up from Rs. 303.22 million in the prior fiscal year. Operating profit also saw a 36% rise, amounting to Rs. 204.98 million, compared to Rs. 150.90 million in FY 2023.
The surge in FTMM's performance was primarily driven by the Soaps segment, which posted a remarkable revenue growth of 35%, reaching Rs. 1,333.93 million. Gross profit from the segment grew by 21% to Rs. 280.77 million, supported by greater market penetration and timely pricing interventions, allowing the company to effectively pass on the impact of inflation to consumers. This success translated into a substantial rise in the segment's operating profit, which soared to Rs. 226.66 million, a significant leap from the Rs. 74.65 million reported in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the corrugated packaging segment, however, faced challenges due to increased competition and tough market conditions. Net revenue for this segment fell by 3% to Rs. 2,814.33 million, and the segment's gross profit dropped from Rs. 165.91 million in FY 2023 to Rs. 80.81 million. The decline is attributed to intensified competition and the challenging economic environment in the country during FY 2024. FTMM management remains optimistic about the future of the corrugated packaging segment and is focusing on operational efficiencies and cost-saving measures to improve profitability in the coming year.
The Modaraba's total net profit from continued operations for the fiscal year amounted to Rs. 266.39 million, a 61% increase from Rs. 165.18 million in FY 2023. This rise was bolstered by effective cost control and improvements in liquidity and plant operations, reflecting the company’s resilience and strategic focus on growth despite the competitive landscape.
Looking ahead, the Board of Directors expressed confidence in FTMM’s ability to capitalize on future opportunities, driven by anticipated economic recovery and a favorable business climate. The Directors also reaffirmed the company's commitment to delivering shareholder value through sound financial and operational strategies.