Karachi: Pakistan Paper Products Limited (PPP) recently held a corporate briefing session for the fiscal year ending June 30, 2025, providing stakeholders with an overview of its financial performance. The briefing, conducted on October 16, 2025, in Karachi, detailed significant shifts in the company's financials, marking a year of notable changes for the paper manufacturing entity.

The company's turnover for the fiscal year 2025 witnessed a decline, registering at 1.93 million compared to 2.13 million in the previous year, a very large move of 9.37%. This decline is mirrored in the net sales, which decreased to 1.73 million from 1.93 million in 2024. The gross profit also saw a decrease, standing at 298,960, down from 391,265 in 2024, indicating the pressures faced in maintaining profitability.

According to information available from the Pakistan Stock Exchange (PSX), PPP's profit before tax fell to 161,463 from 231,101 in the previous fiscal year, marking a big move. The profit after tax also declined, closing at 122,422 compared to 155,911 last year.

The company's financial position remained stable, with total assets increasing to 2.24 million from 2.14 million in 2024. Working capital improved to 532,396 from 489,891, reflecting a stronger liquidity position. The current ratio improved to 2.57 from 2.46, indicating enhanced short-term financial stability.

In terms of operating indicators, the return on equity was 6.99%, down from 9.38% in 2024, while the return on assets decreased to 5.45% from 7.28%. The valuation metrics showed a decrease in earnings per share (pre-tax) to 20.18 from 28.89, and earnings per share (post-tax) also fell to 15.30 from 19.49.

The company's dividend policy saw a reduction in the cash dividend to 50%, a moderate move from the previous year's 75%, with the dividend payout ratio declining to 32.67% from 38.48%.

In terms of production capacity, the company maintained steady production in most segments but saw a decrease in units produced across several categories. The exercise books segment, which constituted 38.07% of total sales, experienced a significant decrease in production, contributing to the overall decline in turnover.

The corporate briefing underscored the challenges faced by PPP in the past fiscal year, as reflected in the financial results. Despite these hurdles, the company continues to focus on improving its operational efficiencies and financial health, as indicated by the incremental improvements in working capital and current ratio.