Karachi: ZIL Limited, a prominent player in Pakistan's personal care and hygiene sector, has reported a 13% increase in gross sales, amounting to PKR 9 billion for the fiscal year ending December 31, 2024. The company's annual report indicates robust sales volume growth as a key driver of this financial performance.
According to the directors' report, ZIL Limited, known for brands such as Capri, HYPro, and Opal, has focused on enhancing product quality and introducing innovative variants to meet evolving consumer preferences. The company's strategic vision and resilience have enabled it to navigate a dynamic market environment.
The directors expressed satisfaction with the annual audited financial results, which showed a gross profit increase of PKR 152 million compared to the previous year. This growth was reinvested into sales expansion and brand-building activities, aligning with the company's commitment to strengthening its market position.
The report highlights that the company manufactures and markets home and personal care products, including beauty and antibacterial soaps and handwash. Despite a declining gross profit margin, down by 69 basis points to 27.7%, the company remains optimistic about its strategic initiatives.
Pakistan's economic landscape in 2024 saw signs of stabilization, with a decline in inflation, a reduction in the State Bank of Pakistan's policy rate, and record-breaking stock market performance. Foreign reserves increased, and foreign exchange rates remained steady. However, challenges such as high energy costs, electricity circular debt, and issues in revenue collection persist.
According to information available from the Pakistan Stock Exchange (PSX), ZIL Limited's net sales reached PKR 6.37 billion, a 12% increase from PKR 5.67 billion in the previous year. Despite these gains, the company's profit after taxation fell to PKR 43 million, an 83% decline from PKR 248 million in 2023. Earnings per share also saw a significant drop, from PKR 40.50 to PKR 7.01.
The directors noted that the international market for palm oil, a critical ingredient in soap production, remained stable for most of 2024 but experienced a substantial price increase in the fourth quarter. This volatility is expected to continue into 2025, posing potential challenges for cost management.
In conclusion, while ZIL Limited has demonstrated growth in sales, the company faces ongoing challenges related to production costs and market conditions. The directors remain committed to strategic investments in brand development and sales expansion to sustain their competitive edge in Pakistan's personal care and hygiene market.