Karachi: Mandviwala Mauser Plastic Industries presented its un-audited financial statement for the half-year ending December 31, 2024, revealing a complex interplay between increased sales volumes and declining sales prices, set against a backdrop of economic improvements in Pakistan.
The Board of Directors highlighted the country's economic progress during the first half of fiscal year 2025 (July-December 2024), as Pakistan's economy continued its stabilization trend from the previous fiscal year. Key macroeconomic indicators showed positive developments, aided by fiscal management, inflation control, and structural reforms, although challenges remain in sustaining growth. Inflation saw a significant decline to 7.2% in the first half of FY2025, down from 28.8% in the same period the previous year, due to easing global commodity prices and a stable exchange rate.
According to the company's report, the State Bank of Pakistan reduced the policy rate by 1,000 basis points to 12% by January 2025. Foreign exchange reserves reached $16.4 billion by December 2024, bolstered by IMF disbursements and remittance inflows. A new 5-Year Economic Transformation Plan, URAAN Pakistan, was introduced, focusing on various sectors including export growth and digital transformation.
Mandviwala Mauser's sales performance revealed notable shifts. The 210 Litre product, despite a 10.2% increase in quantity sold, experienced an 11.2% drop in sales price, resulting in a 2.2% decline in total value. Conversely, the Sealing Cap product achieved a remarkable 1,200% increase in quantity sold, leading to a 1,282.6% surge in total value despite a 72.5% sales price drop. The company's overall net sales for the period decreased by 9.40% to 483.13 million rupees from 533.28 million rupees in the previous year.
The company's gross profit and net profit after taxation also saw declines, with gross profit falling by 20.13% to 64.86 million rupees and net profit dropping by 57.54% to 17.73 million rupees. Earnings per share decreased from 1.45 rupees to 0.69 rupees, a 52.41% decline.
According to information available from the Pakistan Stock Exchange (PSX), Mandviwala Mauser's financial performance reflects broader economic trends in Pakistan, where improvements in certain macroeconomic indicators coexist with challenges in achieving consistent growth.
Looking ahead, the company sees potential for improved profitability, contingent on stable raw material costs and favorable crude oil prices. These factors, along with a steady supply chain, are expected to optimize costs and support higher production volumes. The company anticipates surpassing last year's profit levels if current international economic and political trends persist.
The Board expressed gratitude to shareholders, stakeholders, and the regulatory bodies for their support, and acknowledged the contributions of its employees and Board members during challenging times.