PKGS posts 42% higher profit despite EPS Loss in 9MCY25

October 29, 2025 (MLN): Packages Limited (PSX: PKGS), a leading packaging solutions provider in Pakistan, reported a profit after tax of Rs1.40bn for the nine months ended September 30, 2025, showing a robust increase of 42.13% compared to Rs988.3 million in the same period last year.

However, basic and diluted earnings per share (EPS) declined to a loss of Rs2.88, down 128.57% from a loss of Rs1.26 in the corresponding period of 2024, showing the impact of equity holder attribution.

The company's net revenue increased 10.28% year-on-year to Rs149.04bn, compared to Rs135.15bn last year. Cost of sales and services rose 10.03% to Rs117.66bn, resulting in a gross profit of Rs31.38bn, up 11.21% from Rs28.22bn in 9M 2024.

Operating profit remained relatively stable at Rs17.74bn, showing marginal growth of 0.47% compared to Rs17.65bn in the prior-year period. This was primarily due to increased operating expenses.

Administrative expenses increased 11.31% to Rs5.36bn, while distribution and marketing expenses surged 19.63% to Rs8.64bn. Other expenses jumped 44.81% to Rs1.66bn.

The company recorded a net impairment loss on financial assets of Rs57.8m, compared to a gain of Rs4.1m last year.

Other income declined significantly by 52.25% to Rs812.0m from Rs1.70bn in 9M 2024. Investment income increased substantially by 75.25% to Rs923.5m, compared to Rs527.0m in the corresponding period.

Share of net profit from associates and joint ventures accounted for using the equity method decreased 12.17% to Rs352.9m from Rs401.8m last year.

Finance costs decreased 22.87% to Rs10.81bn from Rs14.02bn, providing significant relief to the bottom line. The company's profit before levy and income tax surged 90.33% to Rs6.93bn from Rs3.64bn.

Levy decreased 38.34% to Rs878.9m from Rs1.42bn in the prior-year period. Profit before income tax jumped 173.14% to Rs6.05bn, compared to Rs2.21bn in 9M 2024.

Income tax expense increased substantially by 278.73% to Rs4.64bn from Rs1.23bn in the corresponding period, leading to a profit after taxation of Rs1.40bn.

The profit attributable to equity holders of the parent company showed a loss of Rs257.5m, compared to a loss of Rs49.0m last year, representing a 425.40% increase in losses. Non-controlling interests recorded a profit of Rs1.66bn, up 60.23% from Rs1.04bn in 9M 2024.

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