CPPL profit plunges 71% in 9MFY26

April 27, 2026 (MLN): Cherat Packaging Limited (PSX: CPPL) reported a sharp 71.13% decline in its profit after taxation for the nine months ended March 31, 2026, falling to Rs114.76m compared to Rs397.58m in the corresponding period last year.

Earnings per share (EPS) contracted to Rs2.34 from Rs8.10 in 9MFY25.

The company’s net sales registered a healthy growth of 12.66% year-on-year, rising to Rs11.07bn from Rs9.83bn.

However, cost of sales increased at a faster pace of 14% to Rs10.19bn, outpacing revenue growth.

As a result, gross profit remained largely flat, declining marginally by 0.67% to Rs883.86m from Rs889.84m, reflecting slight compression in margins.

On the operating side, distribution expenses increased by 16.40% to Rs268.83m, while administrative expenses rose sharply by 21.86% to Rs163.98m. Other operating expenses provided some relief, declining by 9.75% to Rs26.30m.

Meanwhile, other income witnessed a significant drop of 82.69%, falling to Rs64.73m from Rs373.88m, which substantially impacted overall profitability.

Consequently, operating profit declined by 43.68% to Rs489.47mn compared to Rs869.05mn in the same period last year.

On the financial front, finance costs decreased by 26.03% to Rs276.03mn from Rs373.17mn, offering partial support to earnings. However, profit before tax still dropped by 56.96% to Rs213.44mn.

On the taxation side, minimum tax surged sharply by 587.52% to Rs139.33mn, while final tax remained unchanged at Rs4.40mn.

The company also recorded an income tax credit of Rs45.04mn, compared to a tax expense of Rs73.64mn in the prior year.

Despite the tax credit, the overall tax impact remained heavy, resulting in a 71.13% decline in net profit to Rs114.76mn.

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