Roshan Packages Limited (PSX: RPL), a Pakistani manufacturer of corrugation and flexible packaging materials, has reported a mixed financial performance in recent years, with its earnings affected by changes in demand, raw material costs, energy tariffs, exchange rate movements and financing expenses. The company, incorporated as a private limited company in 2002 and converted into a public limited company in 2016, manufactures and sells corrugation and flexible packaging materials for local and international customers.
As of June 30, 2025, Roshan Packages had 141.90 million shares outstanding held by 5,251 shareholders. Directors, the Chief Executive Officer, their spouse and minor children collectively held a majority stake of 68.17 percent, while the local general public held 26.19 percent. The remaining shares were distributed among other categories of shareholders.
The company’s historical performance between 2021 and 2025 shows fluctuations in sales, profitability and margins. Net sales generally increased during the period except in 2025, while profitability expanded in 2021, weakened during the following two years, recovered in 2024 and declined again in 2025. The movement in gross, operating and net margins also remained uneven throughout the period.
In 2021, Roshan Packages recorded a 33.69 percent year-on-year increase in revenue to Rs6,995.84 million, supported by a 7.9 percent increase in sales volume to 38,369 metric tons. Increased awareness around hygiene and packaging following the COVID-19 outbreak, combined with the expansion of online shopping and food delivery, supported demand for packaging products. During the year, the company operated its corrugation plant at 53.5 percent capacity and its flexible plant at 65 percent capacity.
The company’s gross profit increased by 61.47 percent in 2021, with its gross profit margin improving to 12.62 percent from 10.45 percent in 2020. Operating profit rose by 45.62 percent, while lower finance costs resulting from monetary easing and reduced borrowings supported a 39.40 percent increase in net profit. Net profit margin reached 4.94 percent and earnings per share increased to Rs2.44.
Demand remained strong in 2022, with revenue growing 26.73 percent year-on-year to Rs8,865.56 million. Packaging dispatches increased to 44,884 metric tons, while corrugation plant capacity utilization reached 62.5 percent. However, the cost of imported raw materials, depreciation of the Pakistani rupee and higher utility charges increased the cost of sales by 30 percent. As a result, gross profit margin declined to 10.6 percent.
Higher financing costs and exchange losses further affected profitability in 2022. Operating profit declined by 25.98 percent, while finance costs increased by 49.82 percent because of higher discount rates and increased short-term and long-term borrowings. Net profit fell 23 percent to Rs264.71 million, with earnings per share declining to Rs1.87.
In 2023, revenue increased another 15.58 percent to Rs10,246.69 million despite a 9.78 percent decline in sales volume. The company’s continued focus on top-tier local and multinational customers supported price rationalization, while cost optimization helped increase gross profit by 39.26 percent. Gross profit margin improved to 12.44 percent. However, significantly higher finance costs resulting from monetary tightening contributed to a 43.21 percent decline in net profit, which stood at Rs150.338 million.
In 2024, revenue remained largely stable, increasing 0.85 percent to Rs10,333.52 million. Supply chain disruptions linked to blockages in the Red Sea and Black Sea delayed raw material procurement and increased prices. Higher inflation, currency depreciation and energy tariffs pushed up the cost of sales, while weaker demand limited the company’s ability to pass higher costs on to customers. Gross profit therefore declined 30.51 percent and the gross profit margin fell to 8.57 percent.
Despite pressure on gross margins, lower operating expenses and stronger other income helped operating profit rise 9.59 percent in 2024. Finance costs also declined 5.59 percent because of lower outstanding liabilities, while the gearing ratio fell to 8 percent from 16 percent. Net profit subsequently increased 40.53 percent to Rs211.263 million, producing earnings per share of Rs1.49.
The company’s performance weakened again in 2025. Net sales declined 6.51 percent to Rs9,660.69 million as demand from key sectors remained constrained, resulting in lower capacity utilization. Gross profit declined 12.56 percent, while the gross profit margin fell to 8 percent. Administrative expenses increased 20.45 percent as the workforce expanded to 506 employees. Lower other income also affected earnings, with operating profit declining 40.31 percent and its margin falling to 4.45 percent.
Although finance costs declined 36.82 percent in 2025 because of monetary easing, outstanding borrowings increased significantly, raising the company’s gearing ratio to 20 percent. Net profit consequently declined 33.24 percent to Rs141.04 million, while earnings per share stood at Rs0.99 and net profit margin at 1.46 percent.
During the nine-month period of FY2026, Roshan Packages recorded a 15.84 percent increase in revenue to Rs8,170.48 million. The growth was supported by improved sales volumes, upward price revisions and greater focus on higher-margin segments. However, elevated energy costs and delays in passing cost pressures to customers resulted in a 6.30 percent decline in gross profit.
The company also recorded higher administrative expenses during 9MFY26 as it expanded its workforce to meet increased demand and address the requirements of key customers. Operating profit declined 14.24 percent, while finance costs increased 37.33 percent despite monetary easing because of higher short-term and long-term borrowings. Net profit fell 66.44 percent to Rs49.336 million, translating into earnings per share of Rs0.35 and a net profit margin of 0.60 percent.
Looking ahead, Roshan Packages has streamlined its customer portfolio toward the fast-moving consumer goods and essential commodities segments, where demand is expected to remain stable. The company expects population growth and urbanization to support demand for these products and, consequently, for packaging materials.
The company is also focusing on backward integration through its investment in Roshan Sun Tao Paper Mills, which is expected to support the availability of brown paper and enable more timely and cost-effective production. This strategy could help strengthen the company’s raw material supply position while supporting its packaging manufacturing operations.
Roshan Packages’ recent performance highlights the pressure that packaging manufacturers face from energy costs, raw material prices, exchange rate movements and financing expenses. At the same time, its stronger revenue performance during 9MFY26 and focus on FMCG and essential commodities provide areas for potential future demand. With continued investment in backward integration and a more focused customer portfolio, the company is positioning its operations around segments where packaging demand is expected to remain comparatively resilient.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.