PACRA Upgrades the Entity Ratings of EcoPack Limited

EcoPack Limited's ("EcoPack" or "the Company") ratings reflect the Company's improved financial performance, stable market position, sound governance structure, and an experienced management team. The Company is one of the leading manufacturers of quality PET bottles and preforms in Pakistan, strategically located in the northern region of the country. The Company now possesses an enhanced production capacity of 387 million PET bottles and 684 million preforms annually, with a recent addition of a 60 million-bottle-capacity blowing machine. During 9MFY25, the capacity utilization stood at 76% for the blowing machine and 79% for the injection machine. EcoPack continues to maintain a strong presence in the PET packaging sector, which derives demand primarily from the carbonated and non-carbonated soft drinks, bottled water, edible oil, pharmaceuticals, and other consumables. The current customer base of the Company is strong and high-profile. The industry remains seasonal, with higher demand during the summer months and the month of Ramazan. During 9MFY25, EcoPack reported a 22% increase in topline to PKR ~5.0bln (9MFY24: PKR ~4.1bln), mainly supported by higher volumetric sales and improved pricing. The gross profit surged significantly to PKR 794mln (9MFY24: PKR 373mln), resulting in a notable increase in net profitability to PKR 210mln, compared to a net loss of PKR 30mln in the corresponding period last year. This turnaround is primarily attributable to enhanced sales volumes, better cost absorption, and improved operational efficiency. The financial risk profile has strengthened with an improvement in total debt-to-equity to 45% (9MFY24: 47.8%), while the uptick in profitability has eased pressure on coverages. The upgrade reflects their consistent enhancement in business and financial performance, along with improved capacity utilization. Improved internal cash generation has also supported working capital needs.
The Company’s earlier dispute has been successfully resolved, bringing clarity and stability to the ownership and management structure. With improved financial performance, enhanced profitability, and better governance, the rating watch has been removed and the ratings have been upgraded. The Company is expected to continue building on this momentum by further improving margins, sustaining market share, and maintaining strong cash flows and financial discipline.

About the Entity
EcoPack was incorporated as a public limited Company in 1992 and listed on the Pakistan Stock Exchange in 1994. The Company operates with two core product lines: i) PET Preforms and ii) PET Bottles. EcoPack offers a complete range of PET Preforms and Bottles, primarily catering to the Carbonated and non-carbonated drinks, bottled water, and edible oil industries. The overall control of the Company lies with a seven-member Board of Directors. Recently, the Board underwent reconstitution, with four new members joining, including the new Chairman, Mr. Asad Ali Sheikh, replacing Mr. Kamran Nasir. Other newly inducted members include Ms. Laila Jamil, Mr. Ali Jamil, and Mr. Zuhair Ashir. The Board now comprises one executive director, four non-executive directors, and two independent directors. The Company’s CEO, Mr. Hussain Jamil, has been associated with EcoPack since its inception. He is a seasoned businessman with over 50 years of experience, providing strategic leadership and deep industry insight.