⚡ Flash Summary

Mandviwalla MAUSER Plastic Industries Limited’s (MWMP) Annual Report for the year ended June 30, 2025, reveals a year of strategic execution and recovery. While net sales grew marginally by 0.67% to PKR 1,116.04 million, the company prioritized volume growth, leading to a 16.91% surge in total units sold. This volume-led approach impacted profitability, with profit before taxation decreasing by 13.50% to PKR 99.98 million. However, MWMP made significant strides in correcting historical performance deficits, reducing accumulated losses by 17.7%.

📌 Key Takeaways

• ✅ Net sales increased marginally by 0.67% to PKR 1,116.04 million in FY25 compared to PKR 1,108.56 million in FY24.
• 📈 Total units sold surged by 16.91%, reflecting a volume-focused strategy.
• 📉 Profit before taxation decreased by 13.50% to PKR 99.98 million from PKR 115.58 million in the prior year.
• ✔️ Accumulated losses reduced by 17.7% from PKR 346.30 million to PKR 285.08 million.
• ⚠️ Earnings per share (EPS) declined by 29.16% to PKR 2.55 from PKR 3.60, impacted by restatement.
• 📊 Gross profit decreased by 26.4% from PKR 258.18 million to PKR 190.02 million.
• ✨ Operating margin decreased to 13.37% compared to 20.75% in FY24.
• 💡 The company saw a 123% increase in capital expenditure (CAPEX), rising from PKR 3.13 million to PKR 6.98 million.
• 🏭 Actual production tons increased from 1,834 in FY24 to 2,074 in FY25.
• ⚖️ Debt-to-equity ratio increased YoY, reflecting increased reliance on debt.
• 🌱 The company demonstrates a commitment to integrating sustainability principles into its core operations and corporate strategy as highlighted in the ESG Disclosure Report.
• ✔️ The company has a negative mean gender pay gap of -40.6% reflecting roles of women in higher management positions.

🎯 Investment Thesis

Given the mixed performance, with volume growth offset by declining profitability, a HOLD recommendation is appropriate. The company shows promise in its ability to grow volume and reduce accumulated losses, but needs to improve profitability and EPS. Without clear evidence of improved profitability and sector comparison, it is hard to give a BUY rating.