PABC Q1CY26 profit grows 9%

April 30, 2026 (MLN): Pakistan Aluminium Beverage Cans Limited (PSX: PABC) reported a solid 9% increase in its net profit for the first quarter ended March 31, 2026, recording Rs1.39bn compared to Rs1.28bn in the corresponding period last year.

Reflecting this healthy bottom-line growth, the company's basic and diluted earnings per share (EPS) grew to Rs3.85 from Rs3.54 in Q1 2025.

The profit expansion was achieved despite significant top-line contraction, primarily due to exceptional cost controls across the board.

PABC’s net sales posted a 19% year-on-year decrease, falling to Rs3.78bn from Rs4.65bn. However, the company successfully slashed its cost of sales at an even faster pace of 25%, bringing direct production costs down to Rs2.41bn.

Despite these massive cost savings, the sheer volume drop in revenue caused a mild 5% contraction in gross profit, which settled at Rs1.37bn compared to Rs1.44bn in the prior year.

On the operational front, the company executed aggressive overhead containment. Selling and distribution expenses were more than halved, plunging 55% to Rs106.25m, while administrative expenses were reduced by 12% to Rs163.63m.

Although other operating expenses crept up by 10% to Rs142.91m, the company benefited from a stable flow of "other operating incomes," which remained perfectly flat at Rs585.04m.

Below the operating line, PABC found further substantial relief in its debt servicing. Finance costs dropped by a notable 22%, falling to Rs155.87m from Rs200.72m in the same period last year.

Propelled by the massive savings in distribution overheads and lower financial charges, the profit before taxation successfully defied the top-line drop, rising by 9% to Rs1.39bn.

With zero taxation recorded for the quarter, Pakistan Aluminium Beverage Cans Limited securely closed the three-month period with its final net profit up by 9%, standing at Rs1.39bn.

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