MACPAC Films reports 93% decline in profit for H1 FY25

February 11, 2025 (MLN): MACPAC Films Limited (PSX: MACFL) has announced a significant decline in its profit for the six months ended December 31, 2024, reporting a profit after taxation of Rs11.87 million, a 93.34% drop compared to Rs178.31mn for the same period last year.

The company’s performance during the period was impacted by a sharp decrease in gross profit, which fell by 43.43%, from Rs580.21mn in 2023 to Rs328.22mn in 2024.

The decrease in gross profit was largely due to a 12.45% increase in the cost of sales, which amounted to Rs2.6 billion, compared to Rs2.31bn in the same period last year.

Despite a slight increase in revenue from contracts with customers, which rose by 1.25% to Rs2.93bn, the company faced higher operating costs across various expense categories.

Administrative expenses rose by 17.95% to Rs175.59mn, and marketing and distribution expenses saw a significant jump of 31.43%, totaling Rs93.03mn.

Additionally, other operating expenses decreased by 87.79%, indicating some reduction in non-recurring costs.

As a result, operating profit plunged by 83.30%, from Rs346.53mn in 2023 to Rs57.88mn in 2024.

Finance costs decreased by 27.99%, amounting to Rs51.37mn, while other income also saw a decline of 21.26%, totaling Rs12.79mn.

The company’s profit before tax stood at Rs19.17mn, down 93.42% from last year’s Rs291.30mn.

Income tax expenses dropped by 93.54%, reaching Rs7.30mn.

Despite these challenges, MACFL has maintained positive earnings per share, though it also decreased to Rs0.20 from Rs3.01 in the previous year.

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