ECOP FY26 profit rises 22%

September 14, 2026 (MLN): Ecopack Limited (PSX: ECOP) reported a 22% increase in its net profit for the fiscal year ended June 30, 2026, reaching Rs414.88m compared to Rs339.84m in the preceding year.

Alongside the financial results, the board recommended a final cash dividend at 30%.

Reflecting this solid bottom-line growth, basic earnings per share (EPS) for the year improved to Rs8.60, up from Rs7.04 in FY25.

The primary driver behind the performance was gross margin expansion driven by effective direct cost management, which offset a top-line contraction.

Net revenue from contracts with customers dipped by 9% year-on-year to Rs6.51bn, down from Rs7.18bn in FY25 (after deducting sales tax of Rs1.17bn).

However, cost of sales contracted by 14% to Rs5.17bn, enabling gross profit to expand 12% to Rs1.35bn compared to Rs1.20bn in the prior year.

On the operational front, overheads expanded to support administration and distribution scale.

Selling & distribution expenses rose 9% to Rs232.18m, administrative and general expenses grew 22% to Rs216.06m, and net impairment losses on financial assets turned to a loss of Rs3.08m.

These outlays were partially offset by a 79% surge in "other income" (Rs8.70m) and a 2% reduction in other expenses (Rs57.29m). Supported by gross margin gains, operating profit expanded 11% to Rs845.22m.

Below the operating line, ECOP gained significant debt-servicing relief.

Finance costs plummeted by 22% to Rs148.03m (down from Rs189.72m in FY25). Driven by lower borrowing costs and core margin expansion, profit before taxation jumped 22% to Rs697.19m.

The company absorbed a 21% higher corporate income tax expense of Rs282.31m for the year (up from Rs232.41m in FY25).

Supported by 12% gross margin expansion, effective cost containment, and a 22% cut in finance charges, Ecopack Limited securely closed the fiscal year with its net profit reaching Rs414.88m.

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