IMAGE FY26 profit softens 13%

October 06, 2026 (MLN): Image Pakistan Limited (PSX: IMAGE) reported a 13% decline in its consolidated net profit for the fiscal year ended June 30, 2026, recording Rs659.59m compared to Rs759.88m in the preceding year.

Alongside the financial results, the board recommended a cash dividend of 10% (Rs1 per share).

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) for the year fell to Rs2.86, down from Rs3.30 in FY25.

The primary factors weighing on final earnings were a 5% top-line revenue contraction, rising distribution overheads, and elevated finance costs, which offset lower corporate tax expenses.

Consolidated net revenue fell 5% year-on-year to Rs4.38bn, down from Rs4.60bn in FY25. Although cost of sales contracted by 5% to Rs2.33bn, gross profit compressed 4% to Rs2.05bn compared to Rs2.12bn in the prior year.

On the operational front, overheads expanded to support distribution activities. Distribution and selling expenses rose 14% to Rs719.43m, while administrative expenses remained well-controlled, edging down slightly to Rs332.31m.

Operating profit settled at Rs994.08m (down 12% from Rs1.13bn in FY25), cushioned by a slight positive reversal in "other income / (loss)" (Rs337 thousand compared to an operating loss of Rs30.29m in FY25).

Below the operating line, IMAGE faced increased debt-servicing burdens. Finance costs expanded 42% to Rs255.87m (up from Rs179.87m in FY25). Coupled with other charges of Rs33.79m, profit before taxation fell 24% to Rs704.42m.

The company benefited from a substantial 72% reduction in corporate taxation, which fell to Rs44.83m for the year (down from Rs162.94m in FY25).

Despite significant tax relief, top-line sales compression, distribution cost growth, and higher finance charges led Image Pakistan Limited to close the fiscal year with a net profit of Rs659.59m.

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