Tri-Pack Films Limited (TRIPF) reported loss per share of PKR 9.45 for CY25, compared to PKR 11.12 in CY24. Furthermore, in 1QCY26, the company reported earnings per share of PKR 1.05, compared to loss per share of PKR 0.54 in the same period last year (SPLY). The company successfully commissioned Line 5, which is the latest and largest expansion in its BOPP segment. In addition, a new tape machine has been installed to facilitate the production of specialized adhesive tapes, further diversifying the product portfolio.
Management highlighted that Pakistan’s current BOPP demand stands at approximately 80,000 tons, whereas total installed capacity has increased to 161,000 tons following the entry of new players.
This overcapacity is expected to persist over the medium term. Tri-Pack continues to maintain a dominant market share of 46% in the local market, while typically operating with an inventory of around 30 days. In response to a 44% increase in gas prices, the company is transitioning approximately 40% of its power requirements to K Electric, with the system expected to become operational by May. Currently, the weighted average cost of electricity stands at PKR 56/ unit however, management expects a meaningful reduction of up to PKR 20/unit once K-Electric and BESS are fully integrated. To manage excess capacity, the company has expanded its export footprint to 20 countries, including the USA, Canada, Europe, and the Gulf region.
Exports currently account for 17% of total production, with management targeting an increase to 25%–30%. On the procurement side, due to ongoing regional disruptions, the company is planning to diversify its raw material sourcing beyond traditional Gulf suppliers toward China, reducing supply chain concentration risk. From a regulatory perspective, the import duty structure remains favorable for local producers, with finished film imports subject to 15% customs duty plus 2% additional duty, while raw materials are charged only 2% additional customs duty. Lastly, management noted that while the company recorded some inventory gains due to fluctuations in raw material prices, these were largely offset by the increase in gas levies, which have risen from PKR 800 to PKR 1,400 per unit, with a potential increase to PKR 2,500 going forward.
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