IPAK Group reports 12 times increase in EPS to Rs1.72 for FY 2025

 September 18, 2025 (MLN): The Company introduces cash dividend of Rs 0.60 per share i.e. 6% and 5 bonus shares for every 100 shares i.e. 5%. 

Karachi, September 18: IPAK group has recorded net profit of Rs 664 million against loss of Rs571m last year, driven by enhanced efficiencies and cost control. 

Consolidated sales grew by 51% to Rs 34 billion resulted in higher capacity utilisation impacting profitability positively. 

The Board of Directors has recommended a cash dividend of Rs0.60 per share (equivalent to 6 %), alongside the issuance of 5% bonus shares.

This combined pay-out emphasizes the Board’s confidence in the Company’s earnings resilience, healthy cash flows, and strong balance sheet.

Profit attributable to IPAK shareholders at Rs1.20bn VS Rs91m in previous year. The group’s consolidated net profit at Rs664m was significantly impacted by a non cash deferred charge of Rs458m.

The accounting adjustment elevated the effective tax burden far above the average corporate tax rate.

Excluding this effect, consolidated profit after tax would have been Rs1.12bn, while profit attributable to IPAK shareholders would have reached Rs1.57bn.

The deferred tax charge will rationalize over time, showing the underlying earnings strength of operations.

Company’s finance costs increased to Rs2.22bn, showing working capital requirements of new subsidiaries, but remained aligned with growth in volumes and sales.

During FY 2025, Consolidated EPS increased to Rs 1.72 from Rs 0.14 in the previous year, reflecting the strong contribution from newly expanded capacities.

On a standalone basis, IPAK EPS stood at Rs1.22 compared to Rs2.0 in FY 2024, a result of the Company’s strategic shift towards exports, which carry lower immediate margins but reinforce long-term global positioning.

On a standalone basis, IPAK posted sales of PKR 15.6 billion and a net profit of PKR 851 million, supported by its strategic push into exports. Consolidated exports increased by more than four times to Rs7.89bn, representing 23% of total sales.

IPAK Group successfully expanding its footprint across the Middle East, Asia, Africa, the US and Europe.

Foreign exchange earnings have crossed $28.16m during the current financial year stressing the Group’s growing role in supporting national reserves through non-traditional exports.

All capital commitments relating to plant and machinery for the recent expansion through the Group’s two subsidiaries have been fully discharged, ensuring a strong balance sheet and securing capacity for long-term growth.

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