PABC CY25 profit dips 15%

March 18, 2026 (MLN): Pakistan Aluminium Beverage Cans Limited (PSX: PABC) reported a 15% decline in net profit, logging Rs5.22bn for the year ended December 31, 2025, compared to Rs6.10bn in the previous year.

The company's basic and diluted earnings per share (EPS) shrank to Rs14.44 from Rs16.90 in the corresponding period last year.

This bottom-line contraction occurred despite slight top-line growth, driven primarily by rising direct costs and a massive spike in other expenses. PABC’s sales grew by 4% year-on-year, reaching Rs23.99bn up from Rs23.07bn.

However, the cost of sales increased at a much faster pace of 10%, rising to Rs16.16bn from Rs14.64bn. Because the rise in direct manufacturing costs outpaced revenue growth, gross profit fell by 7% to Rs7.83bn from Rs8.43bn in the prior year.

On the operating side, selling and distribution costs remained virtually flat at Rs1.61bn.

Administrative expenses saw a moderate 7% increase, rising to Rs669.85m. The company maintained a strong stream of other income, which grew by 6% to reach Rs2.32bn.

However, profitability was severely dented by "other expenses," which nearly tripled, skyrocketing to Rs1.70bn compared to Rs610.97m in 2024. This heavy burden, combined with the shrinking gross margins, placed significant pressure on the company's operational earnings.

Below the operating line, PABC found some relief as finance costs decreased by 19%, dropping to Rs831.71m from Rs1.02bn.

Profit before income tax stood at Rs5.34bn, marking a 21% drop from the Rs6.76bn recorded in the previous year.

Crucially, the blow to the final net profit was cushioned by a dramatically lower tax burden.

The company booked an income tax expense of just Rs125.63m, a massive 81% plunge from the Rs654.70m paid in the prior year. This substantial tax relief absorbed some of the pre-tax deficit, limiting the final net profit decline to 15%.

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