Pak Agro Packaging Limited (GEMPAPL) commenced its operations in 2001. The company is engaged in the manufacturing and sale of agricultural textile products for use by farmers. These include green house shades, plant support nets, fishing nets, mulching films, anti bird and insect nets etc.
In June 2020, the company turned from private limited company to public limited company and got listed on PSX in November 2021. It was the first company listed on the GEM board of PSX.
Pattern of Shareholding
At the time of listing, the company offered 8 million of its shares for public subscription at the strike price of Rs.24.75. The funds worth Rs.198 million collected through IPO were used for the import of machinery and the construction of new production hall as per its expansion plan.
As of June 30, 2025, GEMPAPL has a total of 20 million shares outstanding which are held by 94 shareholders. Individuals have the majority stake of 89.54 percent in the company. Within the category of individuals, 64 percent of the shares are held by the company’s leadership. This was followed by joint stock companies holding 7.50 percent shares.
Around 1.66 percent of GEMPAPL’s shares are held by Mutual funds and 1.05 percent by the financial institutions. The remaining shares are held by other categories of shareholders.
Financial Performance (2022-25)
GEMPAPL’s topline ascended over the period under consideration; however, its bottomline progressed only in 2024.
The company’s margins considerably fell in 2022. In 2023, gross and operating margins slightly recovered but net margin continued to fall. This was followed by a sound recovery in all the margins in 2024 succeeded by a plunge in 2025. The detailed performance review of the period under consideration is given below.
During 2022, GEMPAPL recorded 24.94 percent year-on-year increase in its net revenue which clocked in at Rs.502.900 million. This was the result of combination of both volumetric and price increases registered during the year. However, high cost of raw materials coupled with Pak Rupee depreciation resulted in 29.39 percent spike in cost of sales.
The weak state of agricultural sector didn’t allow GEMPAPL to fully transfer the impact of cost hike to its consumers.
This resulted in a paltry 2.85 percent year-on-year uptick in gross profit in 2022 with GP margin sliding down from 16.74 percent in 2021 to 13.78 percent in 2022. Administrative expense multiplied by 77.32 percent in 2022 due to elevated payroll expense which was the consequence of inflation as well as workforce expansion from 193 employees in 2021 to 222 employees in 2022.
Distribution expense also escalated by 47 percent in 2022 due to higher Carriage outward charges incurred. Lower profit related provisioning pushed down other expense by 13.71 percent in 2022. Other income also slumped by 31.18 percent in 2022 due to high-base effect as the company recorded hefty gain on sale of its assets in the previous year.
GEMPAPL’s operating profit contracted by 14.59 percent in 2022 with OP margin clocking in at 9.18 versus OP margin of 13.42 percent recorded during the last year.
GEMPAPL was able to squeeze its finance cost by 40.15 percent in 2022 despite monetary tightening. This was the result of improved liquidity position of the company in 2022.
Net profit declined by 15.72 percent to clock in at Rs.28.316 million in 2022 with EPS of Rs.1.42 versus EPS of Rs.2.80 recorded in 2022. NP margin also nosedived from 8.35 percent in 2021 to 5.63 percent in 2022. The issuance of 17.35 million ordinary shares and 2.65 million bonus shares resulted in 49.29 percent year-on-year drop in EPS in 2022.
In 2023, GEMPAPL’s net sales grew by 17.14 percent year-on-year to clock in at Rs.589.119 million. Due to devastating floods in the country, agricultural performance was severely affected. Delays in the commissioning of the company’s new plant also resulted in lesser than expected sales growth in 2023.
High energy and labor cost, elevated cost of raw materials and Pak Rupee depreciation resulted in 16.98 percent higher cost of sales in 2023. Gross profit rose by 18.20 percent in 2023 with GP margin slightly inching up to clock in at 13.91 percent. Distribution expense multiplied by 91.27 percent in 2023 due to increased sales volume and high prices of POL products.
Administrative expense ticked up by 7.93 percent in 2023 due to higher salaries as well as rent, rates and taxes incurred during the year. In 2023, GEMPAPL streamlined its workforce to 204 employees. Other expense surged by 22.76 percent in 2023 due to higher provisioning done for WWF and WPPF done in 2023. Other income declined by 37.63 percent in 2023 due to lower profit on TDRs.
During the year, the company suspended its short-term investments and TDRs and invested in maintaining high level of inventory due to erratic supply situation emanating from the country’s dwindling foreign exchange reserves.
GEMPAPL’s operating profit strengthened by 20.31 percent in 2023 with OP margin ticking up to 9.42 percent. Finance cost mounted by 224.77 percent in 2023 due to high discount rate and increased borrowings. Net profit dwindled by 31.15 percent to clock in at Rs.19.494 million in 2023 with EPS of Rs.0.97 and NP margin of 3.31 percent.
In 2024, GEMPAPL’s net sales grew by 41.53 percent to clock in at Rs.833.801 million. A sizeable portion of the company’s sales mix comprised of green shades whose demand usually increases in the summer season. Fish nets also made significant contribution to the company’s topline in the absence of considerable demand from the agricultural sector. Better sales mix resulted in a GP margin of 16.10 percent in 2024.
In absolute terms, gross profit improved by 63.69 percent in 2024. Distribution expense mounted by 102 percents in 2024 in line with elevated sales volume. Administrative expense surged by 6.67 percent in 2024 due to higher rent, rates and taxes incurred during the year. GEMPAPL expanded its workforce from 204 employees in 2023 to 228 employees in 2024.
Higher profit related provisioning drove other expense by 86.46 percent in 2024. The company didn’t record any other income during the period due to suspension of its short-term investment and TDRs last year.
Operating profit strengthened by 82.52 percent in 2024 with OP margin clocking in at 12.15 percent. Finance cost escalated by 19.58 percent in 2024 due to high discount rate and increased utilization of working capital lines.
This was to support the ongoing BMR plans and to accumulate high inventory levels to be used at the time of constrained FOREX position and difficulty in opening L/Cs. Net profit grew by 101.41 percent in 2024 to clock in at Rs.39.265 million with EPS of Rs.1.96 and NP margin of 4.71 percent.
In 2025, GEMPAPL recorded 2.99 percent uptick in its net sales which clocked in at Rs.858.693 million.
The sales volume of the company inched up by only 0.31 percent during the year to clock in at 1.506 million kilograms. This was due to cutthroat competition in the market on account of additional investments undertaken by the existing players and entry of new participants in the market.
Demand was low due to erratic weather conditions which along with other bleak macroeconomic factors took a heavy toll on the purchasing power of the farmer community.
Majority of new players in the segment are small manufacturers who barely focus on the product quality and the potential clientele being price sensitive get inclined towards them because of the attractive prices they offer.
This didn’t allow GEMPAPL to incorporate the impact of cost hike in its prices which resulted in 10.85 percent drop in gross profit in 2025. GP margin dwindled to 13.92 percent in 2025.
Distribution expense escalated by 29.71 percent in 2025 which comprised of carriage outward charges. Administrative expense ticked up by 4.38 percent in 2025 due to higher payroll expense, rent, rates & taxes as well as directors’ remuneration.
The company‘s workforce enlarged to 286 employees in 2025. Lower profit related provisioning translated into 7.42 percent downtick recorded in other expense in 2025. Operating profit deteriorated by 14.97 percent in 2025 with OP margin dipping to 10 percent.
Despite monetary easing, finance cost spiked by 22.31 percent in 2025 due to higher outstanding borrowings to support the BMR programs. Net profit shrank by 18.67 percent to clock in at Rs.31.935 million in 2025. This translated into EPS of Rs.1.60 and NP margin of 3.72 percent in 2025.
Recent Performance (1QFY26)
GEMPAPL posted a year-on-year growth of 3.57 percent in its topline which clocked in at Rs.229.47 million in 1QFY26. This was due to significant contribution made by the fish net manufacturing segment while agricultural segment remained depressed due to adverse weather conditions and declining purchasing power of farmers.
Core raw materials of the company namely HDPE and colors became pricier during the period and the impact couldn’t be passed on to the consumers due to high price elasticity of demand.
This resulted in 15.44 percent dip in gross profit in 1QFY26 with GP margin falling down to 10.96 percent versus GP margin of 13.43 percent recorded in 1QFY25. Distribution expense surged by 183.164 percent in 1QFY26 due to higher carriage outward charges which probably is the result of higher sales of fish nets.
The company streamlined its workforce from 286 employees in June 2025 to 220 employees in September 2026 which resulted in controlled administrative expense during the period.
Lesser provisioning done for WWF and WPPF resulted in 21.79 percent drop in other expense in 1QFY26. GEMPAPL recorded 21.80 percent thinner operating profit in 1QFY26 with OP margin clocking in at 7.10 percent versus OP margin of 9.41 percent recorded in 1QFY25.
While the company was continually engaged in BMR activities and also in building up adequate stock levels to avoid supply chain disruptions, however, its ability to timely pay off its liabilities along with monetary easing resulted in 34.48 percent dip in finance cost in 1QFY26.
Net profit thinned down by 16.46 percent to clock in at Rs.8.699 million in 1QFY26. This translated into EPS of Rs.0.43 in 1QFY26 versus EPS of Rs.0.52 recorded in 1QFY25. NP margin plummeted from 4.70 percent in 1QFY25 to 3.79 percent in 1QFY26.
Future Outlook
GEMPAPL’s introduction of new product lines such as fish nets is adding diversity to its revenue lines. The onset of monetary easing will make it easier for the company to acquire long-term loans for the purchase of plant and machinery to expand its production lines and take its inventory level to optimum level without increasing the burden of finance cost.
The company can also look into expanding its sales across borders given the fact that the majority of fruits and vegetables exported from the country are packed in net bags.