MACFL reports 55% drop in HY profit

February 10, 2026 (MLN): MACPAC Films Limited (PSX: MACFL) reported a profit after taxation of Rs5.38m for the half year ended December 31, 2025, showing a 54.65% YoY decline compared to Rs11.87m in the corresponding period last year.

Earnings per share (EPS) stood at Rs0.09, down from Rs0.20 in HY24, mirroring pressure on bottom-line profitability.

The company did not announce any cash dividend for the period.

Net sales (revenue) increased 4.64% YoY to Rs3.07bn, up from Rs2.93bn in the same period last year, indicating modest topline growth amid challenging market conditions.

Cost of sales rose marginally by 1.21% YoY to Rs2.63bn, enabling relatively better cost absorption.

As a result, gross profit improved 31.85% YoY to Rs432.75m, compared to Rs328.22m in HY24, with gross margins benefiting from controlled production costs.

On the expense front, administrative expenses increased 29.42% YoY to Rs227.25m, while marketing and distribution expenses edged up 5.27% to Rs97.94m.

Other operating expenses surged sharply by 697.77% YoY to Rs13.66m, exerting significant pressure on operating profitability.

Consequently, operating profit rose 62.22% YoY to Rs93.90m, compared to Rs57.88m in the same period last year.

Finance costs climbed 37.78% YoY to Rs70.78m, partially offsetting operating gains, while other income increased 61.05% YoY to Rs20.60m, providing some earnings support.

Profit before tax and levy surged 126.50% YoY to Rs43.72m. However, levy charges jumped sharply to Rs29.54m, compared to a negligible Rs0.13m last year, materially impacting profitability.

As a result, profit before tax declined 26.01% YoY to Rs14.19m. Income tax expense increased 20.53% YoY to Rs8.80m, bringing profit after taxation to Rs5.38m for the half year.

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