Karachi: Amid continuing economic challenges, Tri-Pack Films Limited has reported a marked downturn in its financial performance for the third quarter ended September 30, 2024, according to information available from the Pakistan Stock Exchange (PSX). The company experienced a significant decline in operating profits and a net loss, as detailed in its latest quarterly financial report.

As of September 30, 2024, Tri-Pack Films Limited recorded a net loss of 291.00 million, a sharp contrast to the net profit of 830.00 million reported in the same period last year. The loss per share stood at 7.49, down from an earnings per share of 21.39 in 2023. This downturn reflects a series of financial stresses, including an increased cost of financing and the impact of higher operational expenses amid inflationary pressures.

Revenue from contracts with customers rose to 21,833.44 million from 18,472.31 million, driven by a 26% increase in sales volumes which the company attributes to a significant rise in exports following the commissioning of its new BOPP Line 5. However, despite higher volumes, the profit margins were adversely affected by lower international prices and a decrease in export margins, alongside extraordinary margins last year due to import restrictions.

Operating profit for the period was reported at 1,543.58 million, down 31% from 2,238.08 million in the prior year. The company also highlighted increased administrative, selling, and financial costs, primarily due to inflationary pressures and a higher debt requirement for working capital financing.

On the balance sheet, total assets increased to 34,568.62 million from 28,270.25 million, reflecting significant investments in property, plant, and equipment. Notably, the company's long-term borrowings saw a substantial increase, rising to 11,975.09 million from 8,040.69 million.

Looking ahead, Tri-Pack Films anticipates potential benefits from a reduction in interest rates, which could alleviate some financial pressures. The company remains committed to enhancing its operational efficiencies and market expansion, particularly in exports, to navigate the ongoing economic challenges.

Tri-Pack Films extends its gratitude to all stakeholders for their continued support during these testing times, as outlined by Nasir Jamal, the Chief Executive Officer, in a statement dated October 14, 2024.