Treet continues its struggle, despite some favourable tailwinds

Treet Corporation Ltd., one Pakistan's leading razor blade manufacturers, is facing headwinds in its core business. The company reported a loss of Rs131 million for fiscal year 2024, despite a 7.4% increase in overall revenue to Rs25 billion.

Treet's flagship razor and blade segment, which accounts for over 40% of its revenue, has seen sluggish growth in recent years. Industry analysts attribute this trend to the growing popularity of beards among Pakistani men, influenced by religious and cultural factors. This shift has led to reduced demand for razor blades, forcing the company to explore diversification strategies.

"We've changed our philosophy from high volume, low profitability to high profitability and low volumes," said Syed Sheharyar Ali, CEO of Treet Corporation, in a recent interview. "While the number of units are less, the value of the topline will be higher."

In an effort to offset the challenges in its core business, Treet has been expanding into other sectors, including battery manufacturing through its subsidiary, Treet Battery Ltd. (TBL). However, despite the booming solar energy market in Pakistan, which has seen a surge in demand for batteries, TBL reported a loss of 286 million rupees ($1 million) for the fiscal year.