IPAK posted a 15% YoY increase in revenue for FY24, reaching PKR 22,835 million. The sales growth was driven by 11.7% volume growth. The average price was lower due to sales mix and higher export compared to the last year. This growth was further accentuated in 1QFY25, where revenue surged by 48% YoY to PKR 7,636 million.
Company’s gross margin fell from 28% in FY23 to 20% in FY24. The trend was even more pronounced in 1QFY25, where the gross margin declined to 13% from 25% in 1QFY24. The company highlighted its strategic focus on expanding its export portfolio to strengthen market presence.
The lower margins on export sales compared to domestic sales have contributed to a decline in overall gross margins during the period. The company reported a net loss of PKR 703 million in FY24 compared to a profit of PKR 1,888 million in FY23, mainly due to high deferred tax expense arising from the capitalization of new plants.
IPAK has a total nameplate capacity of 152,660 tons per annum and an operational capacity of 113,000 tons. The BOPP segment leads with GPAK delivering 40,000 tons annually. CPP and BOPET films provide 8,000 and 35,000 tons, respectively. Additionally, specialized metalized films have a capacity of 26,400 tons, reflecting IPAK’s diverse production capabilities.
In order to contain the energy cost and carbon footprint, the company has a strategic plan to install 10MWs of solar power plant, with 6 MW already been installed. Going forward, the management aims to optimize capacity utilization to enhance gross margins. BOPET production will support local sales, while BOPP will focus on driving export sales.
IPAK is the only Group in the country which offers all three variants of the most commonly used packaging films. The Company is actively expanding its exports, targeting new markets and customers. To drive export growth, it has established a subsidiary, IPAK Connect, in the UAE. Increased volumes are expected to enhance operating efficiencies and create synergies, positively impacting profitability.
Important Disclosures
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