Berger Paints posts 7% profit increase in H1FY26

February 16, 2026 (MLN): Berger Paints Pakistan Limited (PSX:BERG) reported a net profit of Rs174.3m for the half year ended December 31, 2025, which represent a 6.9% increase from the Rs162.9m profit recorded in the same period last year.

The company's earnings per share rose to Rs7.1 from Rs6.64 in the corresponding period of the previous year.

The paint manufacturer's revenue from contracts with customers increased modestly by 1.8% year-on-year to Rs4.7bn from Rs4.62bn.

Cost of sales declined marginally by 0.6% to Rs3.63bn from Rs3.65bn, resulting in a gross profit of Rs1.07bn, up 11.2% from Rs963.8m in the prior period.

The gross profit margin improved to 22.8% from 20.9% in H1 FY2025, indicating better cost management and pricing discipline.

The net profit margin stood at 3.7% compared to 3.5% in the same period last year, reflecting modest improvement in overall profitability.

Total operating expenses increased 20.5% to Rs751.3m from Rs623.7m, driven by higher selling and administrative costs.

Selling and distribution expenses rose 19% to Rs577.6m from Rs485.3m, reflecting increased marketing and distribution investments.

Administrative and general expenses increased 19.3% to Rs141m from Rs118.2m, while other operating expenses surged 61.8% to Rs32.7m from Rs20.2m.

Profit from operations declined 5.8% to Rs320.4m from Rs340.1m, as the benefit of improved gross margins was more than offset by higher operating expenses.

Other income increased 29.7% to Rs52.6m from Rs40.6m, providing additional support to profitability.

Operating subtotal decreased 2% to Rs373m from Rs380.7m.

Finance costs declined significantly by 32.8% to Rs86.6m from Rs128.9m, providing substantial relief as borrowing costs moderated.

Profit before income tax and final taxes reached Rs283.4m, up 12.6% from Rs251.7m in the prior period.

The company recorded a taxation expense of Rs109.1m, up 22.9% from Rs88.8m in the corresponding period last year, which moderated the profit growth at the net level.

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