November 27, 2020 (MLN): Roshan Packages Limited recently conducted an analyst briefing session in which the management discussed the latest financial results of the company and its future outlook.
The company uses state of the art European machinery to provide high quality corrugated, flexible and co-extruded packaging solutions to the FMCG, fruit and pharmaceutical industries among others. The company currently operates two plants (one in Sundar Industrial Estate and one just outside) and has offices and sales people across Pakistan. The company also plans on setting up an environment friendly recycled paper mill. The company has longstanding business relationships with large companies such as Kolson, Pepsico, Bata and Mayfair etc, some of the recent clients on boarded are Coca Cola, TCS, Nestle, Searle etc.
During the briefing, management informed that the company has taken new initiative in last one year by introducing Roshpack (E-Commerce platform) to cater to small and medium businesses for their packaging needs. Many pizza restaurants, pharma companies, fruit makers etc are its clients.
This is the first Packaging portal of its kind in Pakistan where the customers can order their quantities online on small as well as on large scale.
Speaking of financial results, the managment said Roshan Packages earned a gross profit of Rs. 547 million for FY20, as compared to the profit of Rs. 370 million incurred in the same period of last year, showing a growth of 48% YoY. Turnover remained somewhat stable at 5,233 million for FY20 as compared to 5,397 million in FY 19. However, the management clarified that this offset by a significantly improved profitibality. The operating profit also increased by 242%, while profit after tax increased by 1022%.
The latest financial performace of the company during 1QFY21, is similarly optimistic as the company reported a further increase of 57% in turnover and increase of 128% in gross profit as compared to the same quarter of last year.
Commenting the on the company’s business expansion plans, the management informed analysts that Company’s Subsidiary Roshan Suntao Paper Mills Ltd has acquired land located on M2, motorway near district Sheikhupura near Quaid-e-Azam Business Park, approximately one hour from Lahore International Airport. The mill will commence operations 24 months from financial closure,.
This will allow the company to achieve backward integration, utilize optimum capacity of its corrugated plant through uninterrupted paper supply and reduce cost of production through economies of scale. The management also reaffirmed its commitment to see this project through.
Discussing the Corrugated and Flexible plant, the management said that each of them have a similar stake in overall market share and both are seeing growth, adding that former has room for improvement in capacity utilization, whereas, latter is operating around 70-80%. The overall market supply of corrugated is around 100-150k tonnes a month, making RPL the second biggest in this segment, they further added.
Copyright Mettis Link News
38281
