Packages returns to profit with Rs5bn in 1HCY26

August 28, 2026 (MLN): Packages Limited (PSX: PKGS) swung to a consolidated net profit of Rs5.45bn for the half year ended June 30, 2026, reversing a loss of Rs336.80m recorded in the corresponding period last year a complete earnings turnaround driven by strong operational improvement across multiple fronts.

Showing this sharp recovery, the company's basic earnings per share (EPS) attributable to equity holders of the parent company swung to Rs42.34 from a loss per share of Rs14.56 in 1HFY25, while diluted EPS stood at Rs39.58.

The top-line showed healthy momentum, with net revenue growing 11% year-on-year to Rs108.30bn from Rs97.16bn in the prior period.

Cost of sales and services rose at a slower pace of 7% to Rs82.24bn, allowing gross profit to expand by a strong 29% to Rs26.06bn from Rs20.15bn showing meaningful margin improvement driven by better cost management and favourable product mix.

On the expenditure side, administrative expenses rose 21% to Rs4.14bn, and distribution and marketing costs increased 27% to Rs7.23bn. Net impairment loss on financial assets widened to Rs112.91m from Rs37.46m.

Other expenses, however, declined 36% to Rs908.79m from Rs1.41bn, providing partial relief. Other income surged to Rs1.87bn from Rs631.50m nearly tripling and investment income rose to Rs935.51m from Rs109.75m, more than eightfold.

Share of net profit from associates and joint ventures accounted for using the equity method grew 66% to Rs316.76m from Rs190.68m. These combined movements drove operating profit up 60% to Rs16.78bn from Rs10.51bn.

Below the operating line, finance costs held broadly stable, rising marginally by less than 1% to Rs7.27bn from Rs7.25bn. Profit before levy and income tax surged to Rs9.51bn from Rs3.26bn nearly tripling, a gain of 192%.

Levy, however, surged to Rs2.46bn from Rs526.08m a more than fourfold increase pulling profit before income tax up 158% to Rs7.05bn from Rs2.73bn.

The development that further amplified the bottom-line recovery was a significantly lower income tax burden. Income tax declined 48% to Rs1.60bn from Rs3.07bn, substantially boosting the after-tax result and delivering the full swing to profitability.

Of the total profit, Rs3.78bn was attributable to equity holders of the parent company, reversing a loss of Rs1.30bn last year, while non-controlling interests contributed Rs1.67bn, up 73% from Rs964.42m.

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