Karachi: The Board of Directors of Macpac Films Limited has released the unaudited condensed interim financial statements for the half-year ending December 31, 2024, highlighting a modest growth in net revenue against a backdrop of economic stabilization in Pakistan.
The company reported a 1.3% increase in net revenue for the first half of fiscal year 2025, reaching PKR 2.93 billion compared to PKR 2.89 billion in the same period last year. This growth comes amid a challenging market environment that saw a decline in gross profit to PKR 328.20 million, with the margin dropping to 11.2% from 20% in the same period last year. The decrease in gross profit was attributed to rising gas prices and maintenance activities that resulted in production downtime.
Despite these challenges, the company's financial position remained stable with total assets amounting to PKR 4.90 billion by the end of December 2024, compared to PKR 4.81 billion in June 2024. The current assets increased to PKR 2.56 billion from PKR 2.54 billion, while non-current assets rose to PKR 2.34 billion from PKR 2.27 billion over the same period.
The equity and liabilities section showed total equity at PKR 2.17 billion, a slight decrease from PKR 2.24 billion in June 2024, while total liabilities increased to PKR 2.72 billion from PKR 2.57 billion. The balance reflects the company's strategic efforts to maintain financial stability while navigating market fluctuations.
Macpac Films Limited's operating profit for the period stood at PKR 57.88 million, down from PKR 346.53 million in the same period last year. The decrease in operating profit was mainly due to higher administrative and marketing expenses, which increased to PKR 175.59 million and PKR 93.03 million, respectively.
According to information available from the Pakistan Stock Exchange (PSX), Macpac Films Limited's profit before tax for the half-year was PKR 19.17 million, a significant drop from PKR 291.30 million in the previous year. The after-tax profit amounted to PKR 11.87 million, down from PKR 178.31 million, reflecting the impact of increased costs and reduced production volumes.
The company attributed its financial results to the ongoing economic reforms in Pakistan, supported by the International Monetary Fund's Extended Fund Facility of approximately USD 7 billion. This support has been instrumental in stabilizing the Pakistani Rupee and enhancing investor confidence, helping the country achieve a targeted inflation rate of 4.1% by December 2024.
In the designated market category, Macpac Films Limited continues to focus on improving operational efficiency and resilience, with maintenance activities expected to enhance future performance. The company's management remains committed to navigating economic challenges and leveraging favorable market conditions for sustainable growth in the coming periods.