Cherat Packaging Ltd has reported that decreased demand from the cement industry is impacting its business. According to the company’s July-September 2024 quarter (1QFY24-25) financial report, sales revenues declined compared to last year, largely due to reduced demand from the cement and fast-moving consumer goods sectors. The company noted a shift in packaging material preference from paper packs to polypropylene bags, further affecting sales volumes. Additionally, a slowdown in cement dispatches across the country and heightened competition in the polypropylene bag segment contributed to fewer bags sold than in the previous year. As a result, Cherat Packaging Ltd posted an after-tax profit of PKR131m (US$0.47m) in the 1QFY24-25.
In a related development, Cherat Packaging Ltd informed the Pakistan Stock Exchange (PSX) that it successfully sold its Paperback production line (Line III) for EUR440,000. The notification did not disclose the name of the European buyer.
Cherat Packaging, a prominent player in the packaging industry, is part of the Ghulam Faruque Group (GFG). Established nearly 34 years ago, the company began manufacturing quality cement sacks and has since become the leading producer of such sacks.
by Abdul Rab Siddiqi, Pakistan
