AGP 1HCY26 profit drops 8%

August 24, 2026 (MLN): AGP Limited (PSX: AGP) reported an 8% decline in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs1.55bn compared to Rs1.69bn in the corresponding period last year.

Alongside the financial results, the company announced an interim cash dividend of Rs2 per share.

Reflecting this bottom-line compression, the company's basic and diluted earnings per share (EPS) fell to Rs5.21 for the half-year, down from Rs5.25 in 1HCY25.

The primary factor weighing on earnings was a contraction in top-line revenue.

Net revenue from contracts with customers fell by 9% year-on-year to Rs11.53bn, down from Rs12.72bn in 1HCY25.

Although the company managed to trim its cost of sales by 12% to Rs4.67bn, gross profit dropped by 7% to Rs6.85bn compared to Rs7.38bn in the prior year.

On the operational front, overheads remained elevated due to commercial activities.

Marketing and selling expenses rose 2% to Rs3.49bn, while administrative expenses grew 3% to Rs4.45m.

Other operating expenses dipped 2% to Rs153.77m, and "other income" dropped 9% to Rs43.43m.

Below the operating line, AGP benefited from debt-servicing relief, with finance costs falling 12% to Rs660.29m (down from Rs746.85m in 1HCY25).

However, this savings was offset by a new levy charge of Rs29.56m, bringing profit before taxation down 21% to Rs2.11bn.

The reduction in pre-tax earnings was significantly buffered by a 42% lighter net taxation charge of Rs559.50m (down from Rs966.70m in 1HCY25).

Supported by tax savings and lower financing costs, AGP Limited securely closed the six-month period with its net profit contained to Rs1.55bn.

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