Packages Limited returns to profitability in CY25

March 26, 2026 (MLN): Packages Limited (PSX: PKGS) reported a consolidated net profit of Rs260.59m for the year ended 2025, marking a successful turnaround from a consolidated net loss of Rs1.38bn recorded in the previous year.

Consequently, the loss per share (LPS) narrowed to Rs20.55 compared to Rs32.55 in the corresponding period, while dividend was declared at Rs16 per share.

The company's top-line showed healthy growth, with net revenue from contracts with customers rising by 9% year-on-year to Rs193.23bn from Rs176.76bn. Cost of sales and services grew at a slightly slower pace of 8%, reaching Rs153.77bn. Because top-line growth outpaced the rise in direct costs, gross profit jumped nearly 16% to Rs39.46bn from Rs34.05bn in the prior year.

On the operating side, overheads bit heavily into the expanding gross margins. Distribution and marketing costs surged 23% to Rs11.80bn, while administrative expenses increased 11% to Rs7.49bn.

Furthermore, "other expenses" more than doubled, skyrocketing  to Rs2.47bn from Rs1.13bn, and other income dropped 29% to Rs1.62bn.

Despite these inflationary and operational pressures, a 95% surge in investment income (Rs1.21bn) and a 21% increase in the share of profit from associates (Rs506.82m) helped keep the operating profit in positive territory, growing 6% to Rs20.90bn from Rs19.80bn.

Below the operating line, Packages Limited found massive relief. The company slashed its heavy finance cost burden by 20%, dropping to Rs14.60bn from Rs18.36bn in the prior year.

Coupled with slightly lower levies (down 15% to Rs1.26bn), this debt cost reduction allowed the profit before income tax to swing into a solid positive Rs5.05bn, a massive turnaround from the pre-tax loss of Rs29.43m last year.

However, the bottom line took a heavy hit from taxation. The company booked a massive surge in income tax, amounting to Rs4.79bn compared to just Rs1.35bn last year. This massive tax charge nearly wiped out the pre-tax earnings, leaving the final consolidated profit for the year at Rs260.59m.

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