LPGL: Leading Halal Gelatine Manufacturer Shows Resilience and Growth

Leiner Pak Gelatine Limited, known as LPGL on the Pakistan Stock Exchange, has been a key player in the gelatine industry since its establishment as a public limited company in 1983. Specializing in the production and distribution of gelatin and di-calcium phosphate derived from animal bones, LPGL stands out for its commitment to manufacturing and exporting Halal Gelatine sourced from animals slaughtered in accordance with Islamic practices.

Currently, LPGL has 7.5 million outstanding shares held by 590 shareholders, with the local General Public and company Directors being the major shareholders. LPGL's financial performance has been on an upward trajectory, with consistent growth despite occasional challenges.

In 2019, LPGL saw a 3.64% increase in revenue, driven by a surge in export sales. Despite hurdles like currency depreciation, the company managed to boost its gross profit margin to 12.2%. The onset of the COVID-19 pandemic in 2020 posed challenges, leading to a temporary decline in sales. However, LPGL's strategic cost management helped improve its gross profit margin to 15.4%.

The year 2021 marked a significant recovery for LPGL, with a remarkable 42.46% growth in revenue. The resumption of export orders, especially to Malaysia, played a pivotal role in this turnaround. While currency fluctuations and inflation impacted profit margins, LPGL's resilience and operational efficiency remained strong.

LPGL's journey reflects a story of resilience and adaptability in the face of challenges. As a leading gelatine manufacturer in Pakistan, the company's commitment to Halal practices and strategic financial management have been instrumental in its success. With a focus on sustainable growth and market expansion, LPGL continues to be a key player in the industry, catering to both local and international markets.