Cherat Packaging reports around 87% drop in quarterly profit

April 28, 2025 (MLN): Cherat Packaging Limited (PSX: CPPL) reported a significant decline in net profit for the quarter ended March 31, 2025, with a decrease of 86.86%, amounting to Rs85.23 million compared to Rs648.46m in the same period last year.

The earnings per share (EPS) dropped to Rs1.74 from Rs13.21 in the prior year, reflecting a sharp decline in profitability.

Despite a slight 1.17% year-on-year (YoY) increase in net turnover, which stood at Rs3.31 billion compared to Rs3.27bn in the same quarter last year, the company’s profitability took a hit.

The cost of sales decreased by 2.04% YoY to Rs2.99bn, which contributed to an increase in gross profit of 47.51%, standing at Rs312.55m.

On the expense side, distribution costs rose by 16.02% YoY, totaling Rs73.58m, while administrative expenses remained relatively stable, showing a slight decrease of 1.89%.

However, other expenses surged by 38.11% YoY to Rs4.23m, and other income fell drastically by 96.62% to Rs26.69m, contributing to the decline in profitability.

Operating profit dropped by 75.59% YoY to Rs216.94m. Finance costs saw a decrease of 36.40%, amounting to Rs104.15m, helping mitigate some of the losses.

The company recorded a significant reduction in income tax expense, which fell by 93.59% YoY to Rs6.10m.

This resulted in a substantial decrease in profit before tax, which fell by 87.72% YoY to Rs91.32m, primarily due to the sharp drop in other income and operating profit.

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