PABC 1HCY26 profit drops 27%

August 20, 2026 (MLN):  Pakistan Aluminium Beverage Cans Limited (PSX: PABC) reported a 27% decline in its net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs2.85bn compared to Rs3.89bn in the corresponding period last year.

Reflecting this bottom-line compression, the company's basic and diluted earnings per share (EPS) fell to Rs7.91 for the six-month period, down from Rs10.78 in 1HCY25.

The primary driver behind the decline in earnings was a sharp contraction in top-line sales.

Net sales for the half-year dropped by 44% year-on-year to Rs7.59bn, down from Rs13.54bn in 1HCY25.

Although the cost of sales was reduced by 47% to Rs4.64bn, the lower sales volume resulted in a 38% contraction in gross profit, which settled at Rs2.95bn compared to Rs4.73bn in the prior year.

On the operational front, PABC demonstrated strong cost control across all overhead departments.

Selling and distribution expenses dropped by 63% to Rs259.05m, administrative expenses fell by 13% to Rs323.04m, and other expenses declined by 30% to Rs274.62m.

These combined savings reduced total operating expenses by 41% to Rs856.70m, though operating profit still fell 36% to Rs2.10bn due to the top-line drop.

Below the operating line, performance was cushioned by strong non-operating streams and debt cost reductions.

"Other income" grew 3% to Rs1.10bn, while finance costs decreased by 21% to Rs328.75m (down from Rs418.38m in 1HCY25).

These factors brought profit before income tax to Rs2.87bn, down 27% year-on-year.

The company absorbed a 53% lighter corporate taxation burden of Rs11.33m (down from Rs24.16m in 1HCY25).

Supported by effective expense rationalization and finance cost relief, Pakistan Aluminium Beverage Cans Limited securely closed the six-month period with its net profit standing at Rs2.85bn.

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