Karachi: Century Paper and Board Mills Ltd. (CEPB) announced an 11% drop in revenue for fiscal year 2025, reporting a topline of PkR37.3 billion compared to PkR42.0 billion in the same period last year. The decline was attributed to an 8% reduction in sales volume and a 4% decrease in average selling prices.

The company reported a loss of PkR345 million for FY25, a reversal from a profit of PkR524 million in the previous fiscal year. This downturn was largely due to a reduction in gross margins, which fell to 7% from 10% in FY24, impacted by higher pulp prices.

Finance costs decreased to PkR1.6 billion from PkR1.8 billion last year, owing to lower financing rates. However, earnings for the first quarter of FY26 were significantly down, with a 91% decrease to PkR13 million, again due to reduced gross margins.

The total demand for paper and board products in the country fell slightly to 1.76 million tons in FY25. Of this, 31% was met through imports. CEPB's own production decreased to 158,000 tons, while sales reached 170,000 tons due to outsourced box production.

CEPB holds a 10% market share in total paper and board sales. Within the coated packaging board segment, the coated-duplex board category has a 37% market share, while the folded-box board category, dominated by imports, sees CEPB holding a 10% share.

Looking forward, CEPB's management expects a 10-15% revenue growth in FY26, driven by increased national demand and improved regulation against the unorganized sector. They also anticipate an improvement in gross margins to around 10%, aided by lower raw material costs.