AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Treet Corporation Limited (TREET) announced a 6% year-on-year increase in consolidated revenue for the fiscal year 2025 during its corporate analyst briefing. The company attributed this growth to a strategic shift towards a value-focused model and a significant reduction in finance costs, which fell by 30% year-on-year. Earnings per share were recorded at Rs1.36, bolstered by a 3 percentage point improvement in gross margins.
Treet Corporation Limited (TCL) emerged as the primary contributor, accounting for 44% of the group’s revenue. Treet Battery Limited (TBL) followed with a 35% contribution, while the corrugation division, soap business, and Renacon each contributed 11%, 5%, and 5%, respectively.
TCL reported a 15% increase in revenue for FY25, driven by a 22% rise in product prices, which offset a 5% decline in sales volume. The management’s transition from a volume-led to a value-focused strategy was cited as a key factor in the company’s topline growth. Additionally, a 35% reduction in finance costs contributed to improved net margins.
Domestic sales were identified as the main driver of topline growth, while export sales decreased by 6% due to competitive pricing pressures. Despite this, TCL remains optimistic about its export potential, with plans to expand its presence in Dubai and launch two premium brands, Genesis and Estela.
Treet Battery Limited posted a modest 1% increase in revenue, capturing market share from competitors despite a 20-30% fall in industry prices. The segment’s profit after tax reached Rs40 million, recovering from a Rs377 million loss the previous year.
The company announced a partnership with Highstar Dig Energy Technology of China to introduce lithium-ion batteries to the Pakistani market.
First Treet Manufacturing Modaraba experienced a 9% decline in sales due to decreased volumes in soap and corrugation products amid intense competition. However, management remains hopeful for the corrugation business as consumer demand is expected to improve with easing inflation.
Renacon, the company’s pharmaceutical segment, reported an 18% increase in revenue, although profitability was affected by a 177% rise in finance costs, which reduced the net margin to 8%. Despite this, Renacon maintains a dominant 65% share of Pakistan’s dialysis market.