Treet Corporation Limited

Updated 31 Dec, 2019

Treet Corporation Limited was established in 1977 as a public limited company under the Company's Act 1913 (now Companies Ordinance 1984). It is engaged in the manufacturing of shaving blade and disposable razor, marketing and selling to both domestic and exporting markets. The latter has contributed more than half of the total sales during FY19.

Shareholding pattern

A major share of the company, about 44 percent is held by the directors, CEO, their spouses and minor children. Of this, 33 percent is held by Mr. Syed Shahid Ali, one of the directors of the company and also the CEO, while similar ownership is held by individuals. The rest of the ownership is divided between associated companies such as Loads Limited and other institutions and bodies.

Historical performance

Treet Corporation Limited's top-line is mostly dominated by local sales. Prior to FY15, Treet's top-line was growing at an average of 23 percent each year, after which its revenue fell in FY15 and picked up again although at a lower rate.

Recent performance and outlook

The last quarter of FY19 experienced difficult times for the economy and hence the manufacturing sectors. While a lot of the companies saw the aftermath of economic correction in the first quarter of FY20, Treet Corporation yielded relatively better results with top-line growing by 9.5 percent year on year and margins improving considerably. Currency depreciation may have also allowed for better exports while local sales had been increasing through the years.

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Treet Corporation Limited: Recent quarterly results
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Rs (mn)                           1QFY20    1QFY19         YoY
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Net revenue- LHS                   1,717     1,569       9.43%
Cost of sales                      (947)   (1,047)      -9.55%
Gross profit                         770       522      47.51%
Administrative expenses             (97)     (130)     -25.38%
Distribution expenses              (198)     (199)      -0.50%
Operating profit                     475       193     146.11%
Finance cost                       (286)     (193)      48.19%
Other operating expenses               0         0
Other operating income                 9        16     -43.75%
Workers' profit participation fu     (9)       (0)    8900.00%
Workers' welfare fund                (4)         0
Profit before taxation               185        16    1063.52%
Taxation                            (46)        27    -270.37%
Profit from continuing operation     139        43     224.01%
EPS                                 0.84      0.27
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Treet Corporation Limited: Shareholding pattern as at June 30, 2019
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Categories of shareholders                                        %
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Directors, CEO, their spouse and minor children               43.87
Associated companies, undertakings and related part            5.28
NIT                                                            9.36
Foreign Company                                                0.59
Banks, DFIs, insurance                                         2.63
Public sector                                                   0.2
Joint stock and investment companies                           3.61
Modaraba                                                       0.11
Executive                                                      0.16
Company secretary                                              0.01
Others                                                         1.22
Individual                                                    32.96
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Total                                                           100
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Source: Company accounts

Copyright Business Recorder, 2019

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