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Limited Company Based in Pakistan Specializing in Manufacturing Paper Products

Pakistani company Pakistan Paper Products Limited (PPP), established in 1984 as a private entity, subsequently listed on the Pakistani Stock Exchange (PSX) under the symbol PPP...

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Private entity Pakistan Paper Products Limited (PSX:PPP) was established in Pakistan in 1984 as a...
Private entity Pakistan Paper Products Limited (PSX:PPP) was established in Pakistan in 1984 as a private limited company, specializing in paper production.

Limited Company Based in Pakistan Specializing in Manufacturing Paper Products

Transformed Analysis:

Pakistan Paper Products Limited (PSX:PPP) — a Pakistani public limited company — has a rich history dating back to 1984. Its primary business involves manufacturing and selling exercise books, pro-labels, and sensitized papers. Here's a lowdown on PPP's shareholding pattern, financial performance, and recent developments.

Shareholding:As of June 30, 2024, PPP boasts a total of 8 million shares outstanding. Directors, CEO, their families, and associates dominate with a 37.11 percent stake. Following close behind, the general public claims 31.65 percent of the company's shares. Management and Enterprises (Private), an affiliated company of PPP, owns 11.34 percent of its shares, while banks, financial institutions, mutual funds, and insurance companies collectively hold 8.57 percent. Public sector companies and NIT/ICP account for 7.83 percent and 3.50 percent, respectively.

Historical Performance (2019-24):PPP's revenues displayed consistent growth from 2019 to 2024, except for a minor dip in 2020 due to COVID-19-related school closures. In significantly brighter news, the company's net profit soared by 353.11 percent in 2021 and 44.20 percent in 2023, thanks to favorable exchange rates and high demand for its products.

2019:Despite strong performance in the pro-labels segment, PPP's overall topline expanded by 11 percent to Rs.875.44 million. However, its net profit plummeted by 64.10 percent due to currency depreciation, rising commodity prices, and liquidity issues fueled by COVID-19-related disruptions.

2020:With educational institutions closed due to the pandemic, PPP's exercise books witnessed a 13 percent sales decline. Despite heavy restrictions, the company was successful in increasing pro-label production capacity. However, the net profit dipped by 13.38 percent, primarily due to high short-term borrowings and elevated finance costs.

2021:PPP's topline surged by 19.67 percent to Rs.1,092.96 million in 2021, driven by a stellar performance in the pro-label segment and a partial recovery in the exercise books business. Net profit skyrocketed by 353.11 percent thanks to reduced finance costs and higher gross profits.

2024:In 2024, PPP's net sales grew by 10.39 percent, buoyed by increases in exercise books, pro-label, and photocopy paper sales. Despite rising operating expenses, the net profit ascended by 75.12 percent, pushed by improvements in gross profits and a decrease in finance costs.

Recent Performance:For the first nine months of FY25, PPP registered a profit of Rs.117.36 million, amounting to earnings per share (EPS) of Rs.88.10 (likely cumulative or adjusted figure based on the company's recent announcement).

Future Outlook:PPP has shown remarkable progress in enhancing its operational efficiency and waste reduction through modernizing its exercise books production line. The company is also investing in energy efficiency solutions to trim their energy expenses. Such strategic moves are designed to bolster PPP's competitive edge against the unorganized sector and maintain sustainable growth in the future.

  1. The capital held by Pakistan Paper Products Limited (PPP) is evident in its total of 8 million shares outstanding.
  2. A significant portion of PPP's shares is held by directors, CEO, their families, and associates, constituting a 37.11 percent stake.
  3. The momentum in PPP's financial performance can be seen in its consistent growth in revenues from 2019 to 2024, with the exception of a minor dip in 2020.
  4. In the realm of personal-finance, PPP's net profit soared by 353.11 percent in 2021 and 44.20 percent in 2023, due to favorable exchange rates and high demand for its products.
  5. One of the major challenges faced by PPP in 2020 was the liquidity issues fueled by COVID-19-related disruptions, leading to a 13.38 percent decrease in net profit.
  6. For the sports enthusiasts, it's worth noting that the successful increase in pro-label production capacity during the pandemic was a significant development for PPP.
  7. PPP's future-oriented strategies include investing in energy efficiency solutions to reduce energy expenses, aiming to maintain sustainable growth.
  8. The technology adopted by PPP in modernizing its exercise books production line will contribute to improving its competitive edge against the unorganized sector.
  9. In general-news, one can find updates on the company's recent announcement, highlighting a cumulative or adjusted profit of Rs.117.36 million for the first nine months of FY25.
  10. For those interested in education-and-self-development, understanding the financial performance of companies like PPP can provide valuable insights into business and investment strategies.

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