⚡ Flash Summary

Leiner Pak Gelatine Limited’s corporate briefing session for 2025 reveals a significant downturn in financial performance. Sales have nearly halved from PKR 3,344.5 million in 2024 to PKR 1,628.61 million in 2025. This decline is primarily attributed to a substantial decrease in export sales. Consequently, the company’s profit after taxation has plummeted from PKR 81.519 million to PKR 15.822 million, with earnings per share (EPS) dropping from PKR 10.87 to PKR 2.11.

📌 Key Takeaways

• 📉 Sales declined by 51.3% from PKR 3,344.5 million to PKR 1,628.61 million.
• 📉 Export sales decreased significantly from PKR 2,294.946 million to PKR 928.311 million.
• 📉 Local sales also saw a decrease, falling from PKR 1,049.588 million to PKR 700.301 million.
• ⚠️ Cost of sales decreased from PKR 2,926.641 million to PKR 1,355.295 million.
• ⚠️ Gross profit declined from PKR 417.893 million to PKR 273.317 million.
• ⚠️ Profit before taxation decreased sharply from PKR 124.723 million to PKR 37.872 million.
• ⚠️ Profit after taxation dropped from PKR 81.519 million to PKR 15.822 million.
• ⚠️ Earnings per share (EPS) decreased from PKR 10.87 to PKR 2.11.
• ⚠️ Finance costs decreased from PKR 90.796 million to PKR 73.428 million.
• ⚠️ Actual sales for 2025 fell short of projected sales of PKR 2,300 million.
• ⚠️ Projected sales for 2026 are estimated at PKR 2,100 million.
• 🏭 Company produces HALAL Gelatine and Di-calcium phosphate.
• 🌍 Leiner Pak Gelatine was established in 1983.
• ⚖️ Company is listed on the Pakistan Stock Exchange.

🎯 Investment Thesis

Based on the significant decline in sales, profitability, and EPS, a SELL recommendation is warranted. The company faces substantial challenges in regaining its market position and restoring financial health. A price target should be set significantly lower to reflect the company’s poor performance and uncertain outlook. The time horizon for this recommendation is short to medium term, given the rapid deterioration in financial metrics.