Merit Packaging swings to Rs41m loss in 1QFY27

October 30, 2026 (MLN): Merit Packaging Limited (PSX: MERIT) posted a net loss of Rs41.25m for the three months ended September 30, 2026, compared with a profit of Rs472.00m in the same period last year.

Loss per share (LPS) stood at Rs0.21, against earnings per share (EPS) of Rs2.36 in the corresponding quarter last year.

The swing came from the absence of last year’s one-off gain of Rs505.66m on disposal of assets classified as held for sale, along with a 15.90% decline in revenue and a swing to an operating loss. Lower finance charges and a smaller levy partly cushioned the impact.

Revenue fell 15.90% to Rs787.80m from Rs936.74m. Cost of sales declined at a slower pace of 13.58% to Rs753.49m from Rs871.88m, which pulled gross profit down 47.11% to Rs34.30m from Rs64.86m.

General and administrative expenses fell 20.04% to Rs33.63m from Rs42.06m, and selling and distribution expenses declined 8.98% to Rs19.80m from Rs21.75m. Other operating expenses rose 23.18% to Rs4.14m from Rs3.36m. Other income fell 32.13% to Rs10.16m from Rs14.96m.

As a result, the company recorded an operating loss of Rs13.11m, compared with an operating profit of Rs12.65m last year.

Financial charges fell 47.03% to Rs18.29m from Rs34.53m, providing some relief. Without the disposal gain, which stood at nil against Rs505.66m last year, loss before income tax and minimum tax differential stood at Rs31.40m, compared with a profit of Rs483.78m.

Levy (minimum tax differential) declined 16.41% to Rs9.85m from Rs11.78m, which left the net loss at Rs41.25m.

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