Cherat Packaging Profit Surges 83% to Rs651m in FY26

August 18, 2026 (MLN): Cherat Packaging Limited (PSX: CPPL) recorded an 83% increase in its net profit for the year ended June 30, 2026, with net profit for the year climbing to Rs651.01m from Rs356.43m in the corresponding period last year.

Showing this strong bottom-line growth, the company's earnings per share (EPS) expanded to Rs13.26 from Rs7.26 in FY25.

The Board of Directors has declared a final cash dividend of Rs3.00 per share (30%) for the year ended June 30, 2026.

The top-line showed healthy growth, with net turnover rising 16% year-on-year to Rs15.09bn from Rs13.01bn in the prior year.

Cost of sales rose at a slower pace of 10% to Rs13.21bn, allowing gross profit to surge by 84% to Rs1.88bn from Rs1.02bn a remarkable expansion reflecting significantly improved margins on the back of better pricing and cost efficiency.

On the expenditure side, distribution costs rose 20% to Rs367.90m, administrative expenses increased 23% to Rs227.78m, and other expenses more than tripled to Rs80.15m from Rs26.00m.

In aggregate, the operating expenditure subtotal rose 30% to Rs675.82m. Other income declined 30% to Rs269.17m from Rs384.27m. Despite these headwinds, the strong gross profit expansion drove operating profit up 66% to Rs1.47bn from Rs886.41m.

Below the operating line, finance costs declined 17% to Rs384.08m from Rs462.57m, providing a meaningful tailwind. These combined factors pushed profit before levies and income tax to more than double at Rs1.09bn from Rs423.84m, a gain of 157%.

The levy burden eased dramatically, declining 96% to just Rs4.40m from Rs122.41m in the prior year, as minimum tax which had been Rs118.02m last year was absent in the current period. This brought profit before income tax to Rs1.08bn, nearly four times the Rs301.43m recorded last year.

On the taxation front, current tax rose to Rs258.77m from Rs75.65m, while prior year tax credit narrowed to Rs31.53m from Rs50.06m.

Deferred tax swung to a charge of Rs205.44m against a credit of Rs80.59m last year, resulting in total income tax of Rs432.68m against a net credit of Rs55.00m in FY25.

Despite this significantly heavier tax burden, the exceptional pre-tax profit growth was sufficient to deliver an 83% increase in net profit for the year.

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