Karachi: Pakistan Paper Products Limited has released its financial results for the third quarter ending March 31, 2025, showing a decline in profit compared to the same period last year. According to the company's unaudited condensed interim financial statements, the net profit for the nine months ended March 31, 2025, was 88.10 million rupees, a decrease from 112.51 million rupees in the corresponding period of 2024.
The company’s board of directors, in a meeting held on April 24, 2025, decided against declaring any interim cash dividend, bonus shares, right shares, or any other entitlements or corporate actions. This decision aligns with the company's focus on maintaining financial stability amid challenging market conditions.
The financial results indicate a drop in net sales to 1.28 billion rupees from 1.43 billion rupees in the previous year. The gross profit stood at 219.54 million rupees, down from 299.59 million rupees in the same period of 2024. The company cited increased cost of sales, which amounted to 1.06 billion rupees, as a contributing factor to the decrease in gross profit.
Operating profit also fell to 147.25 million rupees from 200.97 million rupees last year, impacted by higher administrative and selling expenses. Administrative expenses rose to 46.61 million rupees, while selling and distribution expenses increased to 17.51 million rupees.
The financial costs for the period were reported at 31.74 million rupees, lower than the 49.24 million rupees recorded in the previous year. Despite a reduction in finance costs, the overall profit before taxation dropped to 117.36 million rupees from 152.55 million rupees in 2024. According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share decreased to 11.01 rupees compared to 14.06 rupees in the previous year.
The company’s balance sheet shows total assets of 2.16 billion rupees, with non-current assets amounting to 1.38 billion rupees and current assets standing at 784.28 million rupees. The equity and liabilities section indicates a total equity of 1.72 billion rupees, including revenue reserves of 678.05 million rupees.
Pakistan Paper Products Limited's cash flow statement reveals net cash inflows from operating activities at 114.24 million rupees, driven by adjustments for non-cash items, despite higher payments for income taxes and other obligations. However, the company reported net cash outflows from investing and financing activities, leading to a net increase in cash and cash equivalents for the period.
The company has stated that the detailed financial statements are available on its website and the Pakistan Unified Corporate Action Reporting (PUCAR) system for stakeholders' review.