Lahore: Shezan International Limited has released its financial statements for the three-month period ending September 30, 2024, revealing a challenging quarter influenced by market and economic pressures. The company reported a net loss of Rs. 27.66 million, a stark contrast to the net profit of Rs. 10.28 million recorded in the same period last year.
According to information available from the Pakistan Stock Exchange (PSX), Shezan International faced decreased sales volumes primarily due to the imposition of a 20% Federal Excise Duty on juices, squashes, and syrups last year, which significantly impacted the entire juice and beverage industry. Revenue from contracts with customers was Rs. 2.12 billion, down from Rs. 2.31 billion a year earlier, with gross profit also declining to Rs. 438.29 million from Rs. 522.54 million.
The reduction in the policy rates by the State Bank of Pakistan by up to 1750 basis points since July 2024 has provided some financial relief, lowering finance costs associated with working capital used for stocking seasonal fruits, pulps, sugar, and packaging materials.
Despite the domestic market challenges, the company has seen positive developments in its export sales, particularly with non-returnable bottled juices, juices in tetra packaging, ketchups, and cooked food products. Efforts to enhance supply chain efficiency and reduce production costs were highlighted as key strategies moving forward.
Looking ahead, Shezan International anticipates continued economic pressures, including rising costs for gas, electricity, and raw materials like sugar. Management is actively exploring new revenue streams and focusing on aggressive marketing and sales efforts to maintain stability. The company is also planning to enter the mineral water market, underscoring its strategy to diversify offerings and cater to the evolving consumer needs.
In conclusion, the Board extended its gratitude to shareholders, customers, employees, and all stakeholders for their ongoing support and expressed confidence in navigating the current economic challenges to achieve sustained growth and value.