MACTER FY26 profit softens 14%

September 23, 2026 (MLN): Macter International Limited (PSX: MACTER) reported a 14% drop in its consolidated net profit for the fiscal year ended June 30, 2026, recording Rs675.17m compared to Rs786.93m in the preceding year.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) for the year stood at Rs14.83, down from Rs16.95 in FY25.

The primary factor weighing on final earnings was higher taxation outlays and selling expense inflation, which offset a strong 17% expansion in top-line revenue.

Consolidated revenue from contracts with customers grew by 17% year-on-year to Rs12.17bn, up from Rs10.36bn in FY25.

Cost of sales expanded by 11% to Rs6.25bn, allowing gross profit to increase 25% to Rs5.92bn compared to Rs4.73bn in the prior year.

On the operational front, overheads expanded significantly to support market expansion.

Selling and distribution expenses rose 30% to Rs3.59bn, while administrative expenses grew 30% to Rs883.53m.

Additionally, other income fell 46% to Rs42.64m, and expected credit loss allowances recorded a charge of Rs1.58m (reversing a credit of Rs10.12m in FY25). These factors limited operating profit growth to 8%, settling at Rs1.38bn.

Below the operating line, finance costs rose 9% to Rs146.60m (up from Rs134.68m in FY25). Despite operational cost inflation, pre-tax profit grew 8% to Rs1.23bn.

However, the company absorbed a 58% higher corporate taxation charge of Rs558.77m for the year (up from Rs354.44m in FY25).

Compounded by selling expense inflation, reduced non-operating income, and higher corporate taxes, Macter International Limited closed the fiscal year with a net profit of Rs675.17m.

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