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Lahore: The Pakistan Credit Rating Agency (PACRA) has affirmed the ratings of MACPAC Films Limited, acknowledging its stable market position and robust management in the face of economic challenges. The company, a key player in the manufacturing of Biaxially Oriented Polypropylene (BOPP) and Cast Polypropylene (CPP) films, remains a crucial supplier to the food and consumer goods sectors.
Despite facing margin pressures due to rising energy costs and inflation, MACPAC has managed to maintain its market share by focusing on quality and customer retention. The company’s strategy includes building sufficient inventory to mitigate the risks associated with exchange rate fluctuations, as a significant portion of its raw materials are imported.
MACPAC’s efforts to strengthen its market position are underscored by the commissioning of a new Thermal Lamination Film machine, operational since April 2025. This facility enhances the durability and visual quality of printed materials, contributing to the company’s competitive edge.
In fiscal year 2025, MACPAC reported a topline growth of approximately 6.7%, reaching PKR 5,994 million. However, the company’s profitability decreased significantly due to elevated energy costs and inflation, resulting in a profit of PKR 85 million, a sharp decline from the previous year’s PKR 258 million.
The company is actively addressing these challenges by transitioning to alternative energy solutions. Maintenance activities conducted during the first quarter of fiscal year 2026 are expected to enhance operational efficiency and productivity, supporting future growth.
MACPAC’s leverage increased to 25% in fiscal year 2025, primarily due to investments in the thermal lamination machine and solar panels, while its equity remained steady at PKR 2.2 billion.
PACRA emphasizes the importance of MACPAC’s ability to sustain its business profile amid strong competition and the need for effective financial risk management. The company’s adherence to a strong governance framework is also deemed crucial for maintaining its ratings.