Arpak faces stability risks, uncertainty looms

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MG News | March 28, 2024 at 01:09 PM GMT+05:00

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March 28, 2024 (MLN): Arpak International Investments Limited (PSX: ARPAK) faces significant risks and uncertainties within its focused portfolio, as three consecutive years of net losses threaten its overall financial stability, the company said in a stock filing on Thursday.

Additionally, long-term investments in associated companies expose the company to operational and financial uncertainties, while market fluctuations and regulatory risks add further complexity.

To address these challenges, the company implements strategies such as rigorous financial management, continuous assessment of associated companies' health, and staying informed about market trends and regulatory changes, it said.

ln 2022-2023, The company faced operational losses of Rs1.55 million and a net loss of Rs76.3m, mainly due to Rs91.67m impairment loss in investments.

Moving forward, “the company is committed to optimize asset performance and making prudent investment decisions,” it said.

Achieving operating profit in subsequent year highlights its resilience and potential for growth.

The company continues to explore avenues for diversification within its limited operational scope, emphasizing growth and portfolio optimization through strategic investments while maintaining a focus on rental properties and mutual funds.

Copyright Mettis Link News

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