Karachi: Pakistan Paper Products Limited (PPP) has released its financial results for the half-year ending December 31, 2024, revealing a decline in net sales and net profit compared to the corresponding period last year. The company's Board of Directors convened on February 25, 2025, to discuss these financial outcomes, which reflect a cautious approach amid challenging market conditions.
According to the financial statements, PPP's net sales for the half-year amounted to 744.18 million rupees, a decrease from 910.33 million rupees in the same period in 2023. The decline in sales was accompanied by a reduction in the cost of sales, which fell to 625.23 million rupees from 744.25 million rupees. Consequently, the gross profit for the period stood at 118.95 million rupees, down from 166.07 million rupees previously.
The company's operating profit also experienced a downturn, reaching 72.19 million rupees compared to 119.87 million rupees in the corresponding period last year. Administrative expenses rose to 30.96 million rupees from 28.21 million rupees, and selling and distribution expenses increased to 11.92 million rupees from 9.96 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), the profit before taxation for PPP was recorded at 51.77 million rupees, a decline from 85.99 million rupees in the previous year. After accounting for net taxation of 21.85 million rupees, the company's net profit for the half-year was 29.93 million rupees, compared to 66.06 million rupees in 2023.
Earnings per share for the half-year were reported at 3.74 rupees, down from 8.26 rupees in the same period last year. Despite these financial challenges, the company's Board of Directors did not recommend any interim cash dividend, bonus shares, right shares, or any other corporate actions during their recent meeting.
PPP’s financial position as of December 31, 2024, shows total assets amounting to 2.22 billion rupees, with non-current assets comprising property, plant, and equipment valued at 1.37 billion rupees. Current assets were reported at 849.84 million rupees.
The company's equity and liabilities section revealed that PPP's issued, subscribed, and paid-up share capital remains at 80.00 million rupees, with revenue reserves slightly declining to 619.87 million rupees. Non-current liabilities increased to 174.31 million rupees, primarily due to long-term loans secured during the period.
The financial results highlight the company's cautious approach in a challenging market, with no new entitlements or corporate actions announced. PPP continues to manage its cash flow judiciously, with net cash inflows from operating activities recorded at 47.40 million rupees, while net cash outflows from investing and financing activities were noted at 75.62 million rupees and 6.07 million rupees, respectively.
These financial statements, including the condensed interim statement of financial position and profit or loss, are available for review on the company's official website and will be uploaded to the PUCAR platform in due course.