KARACHI: First Treet Manufacturing Modaraba (FTMM) reported a net profit after tax of Rs89.44 million for the nine months ended March 31, 2026, reflecting a 21% decline compared to Rs113.74 million earned during the corresponding period last year, as rising input costs and higher operating expenses weighed on profitability.
According to the company’s latest financial results, net sales increased by 5% year-on-year to Rs2.99 billion, compared to Rs2.86 billion in the same period of the previous year. The growth was driven by higher revenues from both its corrugated packaging and soap business segments despite a challenging market environment.
However, the increase in sales was not enough to offset rising costs. Gross profit declined 8% to Rs248.15 million, while operating profit dropped sharply by 49% to Rs60.21 million from Rs117.87 million a year earlier. Earnings per certificate also fell to Rs0.46, compared with Rs0.58 in the corresponding period last year.
The company attributed the weaker profitability to higher raw material prices, particularly in the soap segment, along with increased administrative and distribution expenses. Management noted that while revenues continued to grow, margins remained under pressure due to competitive pricing and elevated input costs.
The corrugated packaging segment generated Rs2.21 billion in revenue, up 3% year-on-year, but operating profit fell significantly to Rs6.5 million from Rs30 million as intense market competition and pricing pressures squeezed margins.
Meanwhile, the soap business recorded stronger growth, with sales rising 9% to Rs787 million. Despite higher revenues, gross profit in the segment declined due to increased raw material costs, limiting overall earnings growth.
Looking ahead, the Board acknowledged that the business environment is expected to remain challenging amid continued input cost volatility and competitive pressures. Nevertheless, the company remains focused on improving operational efficiency, optimizing costs, strengthening customer relationships, and enhancing its product mix to support sustainable growth and profitability over the medium term.
