KARACHI: Treet Corporation Limited (PSX: TREET) reported a net profit of Rs719 million for the nine months ended March 31, 2026 (9MFY26), down 24% from Rs948 million recorded in the corresponding period last year, as a higher tax charge offset improvements in operating performance and lower finance costs.
The company posted earnings per share (EPS) of Rs1.94, compared with Rs2.55 in the same period of the previous year.
During the period, net sales increased 4% year-on-year to Rs10.01 billion, supported by strong domestic demand, which grew 14.5%, despite continued weakness in export markets. Gross profit rose 19% to Rs3.90 billion, reflecting improved product mix, higher sales volumes, and disciplined cost management.
Operating profit also improved, increasing 6% to Rs1.16 billion from Rs1.09 billion a year earlier. Meanwhile, finance costs fell sharply by 46% as declining interest rates and lower borrowings reduced the company’s financing burden, providing a significant boost to profitability.
Treet also generated Rs221 million in gains from the restructuring of listed investments and received Rs285 million in dividend income during the period. However, the benefit was partially offset by an additional super tax charge of approximately Rs140 million, following a Supreme Court ruling applicable to all companies.
At the group level, consolidated revenue remained broadly stable at Rs18.99 billion, compared with Rs19.19 billion in the same period last year. Consolidated gross profit increased 7% to Rs5.51 billion, while consolidated profit before tax rose 12% to Rs977 million, primarily due to reduced borrowing costs. However, consolidated profit after tax declined 38% to Rs200 million, reflecting the impact of higher taxation.
Management noted that its export revitalization strategy is progressing, with plans to expand into modern trade channels across GCC markets and strengthen its international distributor network through recently launched brands Genesis and Estela.
Looking ahead, the company remains optimistic about sustaining growth amid easing inflation and stable commodity prices. However, it cautioned that ongoing geopolitical tensions in the Middle East could pose risks to Pakistan’s economy and the company’s export business. Management said it has already taken measures to preserve liquidity while remaining prepared to capitalize on emerging opportunities.
