⚡ Flash Summary
Roshan Packages Limited’s 2025 Annual Report reveals a challenging year marked by macroeconomic headwinds, including high inflation and currency volatility, leading to a 6.5% decline in net revenue to Rs. 9,661 million. Despite these challenges, the company maintained profitability through strategic resilience and cost discipline. Financial performance was impacted by higher raw material and energy costs, although finance costs decreased due to effective capital management. The company remains focused on sustainable growth and shareholder value, continuing investments in renewable energy and innovative packaging solutions.
📌 Key Takeaways
- 📉 Net revenue declined by 6.5% YoY to Rs. 9,661 million, reflecting weaker demand.
- ✅ Gross profit decreased by 12.6% YoY to Rs. 774.4 million.
- ✅ Finance costs improved year-over-year to Rs. 190 million due to better capital management.
- 📉 Profit before tax (PBT) significantly dropped to Rs. 240 million, compared to the previous Rs. 416 million, indicating lower profitability.
- 📉 Profit after tax (PAT) decreased to Rs. 141 million, a considerable decrease over previous Rs. 211 million.
- 📉 Earnings per share (EPS) decreased to Rs. 0.99, significantly less than the prior Rs. 1.49.
- Total assets increased slightly to Rs. 12,161 million showing the increased operational ability.
- ✨ Successful transition of over 52% of total operations to renewable solar energy for cost and carbon efficiency.
- 🏆 Awarded ‘Brand of the Year 2024’ for Corrugated and Flexible Packaging Solutions.
- ✅ Company is diversifying into circular economy.
- All 7 Directors attended at least 5 of the 6 board meetings, indicating good governance.
- The company did not recommend dividend payout.
- Roshan Sun Tao Paper Mills, a wholly owned subsidiary, is in pre-operational phase, supported by continuous investment.
- 👍 Signed Memorandum of Understanding (MoU) with universities to promote industry-academia collaboration.
- ✨ Implemented an online and paperless performance management system.
🎯 Investment Thesis
Roshan Packages faces headwinds and there might be downside potential, so hold.
Disclaimer: AI-generated analysis. Not financial advice.