Cherat Packaging posts around 49% profit growth in H1 2024

February 20, 2025 (MLN): Cherat Packaging Limited (PSX: CPPL) reported a robust 48.73% year-on-year (YoY) increase in net profit for the half-year ended December 31, 2024, with its profit after tax rising to Rs312.35 million, compared to Rs210.01mn in the same period last year.

The company has declared an interim cash dividend of Rs1 per share, equivalent to 10%.

The earnings per share (EPS) also improved to Rs6.36 from Rs4.28 in the prior year.

Despite a 12.61% YoY decline in net turnover, which stood at Rs6.52 billion compared to Rs7.46bn in SPLY, the bank managed to boost profitability.

The cost of sales declined by 7.58% YoY to Rs5.94bn, though gross profit took a hit, falling 43.95% YoY to Rs577.29mn.

On the expense side, administrative costs fell by 6.35% YoY to Rs90.08mn, while distribution costs rose by 17.55% YoY, reaching Rs157.38mn.

Other expenses also surged 71.52% YoY to Rs24.91mn.

However, other income grew significantly by 258.41% YoY, standing at Rs347.19mn, supporting the bank’s overall profitability.

Operating profit declined by 26.08% YoY to Rs652.11mn, but a sharp 51.09% drop in finance costs, which stood at Rs269.02mn, helped offset some of the losses.

Consequently, the profit before income tax increased by 23.23% YoY to Rs379.90mn.

On the tax front, the bank recorded an income tax expense of Rs67.55mn, a 31.26% decrease from Rs98.27mn in SPLY.

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