Macter profit rises 8% on strong sales growth

April 27, 2026 (MLN): Macter International Limited (PSX: MACTER) reported a steady 8.44% increase in its profit after taxation for the nine months ended March 31, 2026, clocking in at Rs529.30 million compared to Rs488.10m in the corresponding period last year.

Earnings per share (EPS), basic and diluted also rose to Rs11.50 from Rs10.64, showing a similar growth trajectory of 8.08%.

The company's bottom-line expansion was primarily driven by robust top-line growth and improved gross margins, though rising operating expenditures and a significant surge in income tax expense partially tempered the overall earnings momentum.

Net revenue grew by 21% year-on-year to Rs9.27bn, up from Rs7.68bn in the same period last year, indicated strong demand momentum in the pharmaceutical segment.

However, cost pressures remained evident, as the cost of sales increased by 14% to Rs4.76bn from Rs4.19bn.

Despite this, gross profit registered a solid 29% rise to Rs4.51bn compared to Rs3.49bn previously, showing improved pricing power and margin management.

On the expense side, operating costs expanded notably. Selling and distribution expenses increased sharply by 31% to Rs2.74bn, administrative expenses rose by 36% to Rs679.13m, while other expenses grew by 23% to Rs81.61m.

Notably, the charge on loss allowance on trade debts declined significantly by 77% to Rs5.85m from Rs25.23m, offering a measure of relief on the cost side.

Other income, however, contracted sharply by 41% to Rs36.65m from Rs62.60m in the prior-year period, limiting additional support to the bottom line.

Despite the rise in overheads and the compression in other income, the company's operating profit recorded a healthy 19% increase to Rs1.04bn from Rs875.65m, emphasizing the strength of its core business operations.

Finance costs remained broadly stable, edging up by just 1.21% to Rs99.32m from Rs98.13m, resulting in profit before income tax rising by 21% to Rs942.76m compared to Rs777.52m in the same period last year.

Taxation, however, surged significantly by 43% to Rs413.46m from Rs289.42m, materially diluting pre-tax gains and constraining net profit growth.

Despite this headwind, Macter International still managed to post a healthy 8.44% rise in net profit, closing the nine-month period at Rs529.30m.

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