CEPB FY26 loss shrinks 83%

August 13, 2026 (MLN): Century Paper & Board Mills Limited (PSX: CEPB) reported a dramatic 83% reduction in its net losses for the fiscal year ended June 30, 2026, narrowing its loss after taxation to Rs58.29m compared to a net loss of Rs345.42m in the preceding year.

Reflecting this sharp recovery trajectory, the company's loss per share (LPS) dropped to Rs0.15 from a loss per share of Rs0.86 in FY25.

The significant improvement in financial performance was driven by a mild top-line expansion, reduced operating overheads, and a substantial reduction in debt-servicing costs.

CEPB’s net turnover posted a 4% year-on-year increase, rising to Rs38.70bn from Rs37.28bn.

Although the cost of sales expanded by 4% to Rs36.15bn causing gross profit to dip slightly by 4% to Rs2.55bn the company effectively protected its operating profitability through secondary income and controlled expenses.

On the operational front, general and administrative expenses rose by 7% to Rs1.12bn, while selling and distribution expenses were trimmed by 8% to Rs293.93m.

 Despite a surge in other operating expenses (Rs87.42m), a powerful 61% boost in "other income" (which reached Rs690.29m up from Rs427.95m) drove total operating expenses subtotal down by 17% to Rs813.79m.

Consequently, operating profit expanded by 4% to Rs1.74bn.

Below the operating line, CEPB achieved its most critical financial relief from reduced borrowing burdens.

Finance costs plummeted by 26%, dropping to Rs1.22bn from Rs1.65bn in FY25.

Supported by this interest savings hit, the company turned a profit before income tax and levy to Rs514.39m (up multi-fold from Rs30.04m).

After deducting a 13% lower statutory levy charge of Rs380.63m, the company generated a pre-tax profit of Rs133.76m (a complete turnaround from a pre-tax loss of Rs409.61m in FY25).

Despite absorbing a corporate income tax expense of Rs192.05m (compared to a tax credit of Rs64.18m last year), Century Paper & Board Mills Limited securely closed the fiscal year having slashed its annual net loss down to Rs58.29m.

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