PACRA maintains rating of Cherat Packaging Ltd

December 24, 2024 (MLN): Pakistan Credit Rating Agency Limited (PACRA) has maintained the ratings of Cherat Packaging Limited (PSX: CPPL) at A for the long-term and A1 for the short-term with a positive outlook forecast, latest press release issued by PACRA showed.

CPPL is one of the largest producers and suppliers of Papersack and Polypropylene bags to the cement industry in Pakistan.

The Company has diversified its operations by innovating in the Flexible Packaging Division.

CPL commenced its Flexible packaging operations in the year 2018.

It installed a Rotogravure printer, Flexographic printer, and Extrusion.

Encouraged by the response from the market, the Company installed its second Rotogravure printer and Flexographic printer in the financial year 2023 and 2024, respectively, which are now operational.

Production lines are acquired from world-renowned European suppliers.

Furthermore, the Company is determined to overcome the current challenges by making timely decisions to improve its operating results and maintain market leadership.

It is striving to be a leading player in the field of packaging through continuous expansions, diversification, and realignment of its existing businesses.

Additionally, the Company has consistently proven its ability to overcome challenges while creating a long-term business model that enhances stakeholder value.

During the year, the company's revenues declined due to a shift from paper sacks to polypropylene bags in the cement industry, a slowdown in cement dispatches, and increased competition in the polypropylene bag market.

Sales revenues in the Flexible Packaging division continued to rise, driven by new customers and expansion into untapped markets.

However, high inflation, increased electricity tariffs, and rising fuel costs led to higher input costs, negatively impacting production expenses.

For the year ended June 30, 2024, the Company made an after-tax profit of Rs886 million.

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