Packages Limited reports loss after last year’s profit

March 26, 2025 (MLN): Packages Limited (PSX: PKGS) has reported a significant downturn in its financial performance for 2024, as the company recorded a net loss of Rs1.38 billion [EPS: Rs -32.55] compared to a profit of Rs10.49bn [EPS: Rs100.18] in the same period last year (SPLY).

The company has declared a cash dividend of Rs15 per share (150%) for its ordinary shareholders.

The company’s revenue, however, increased by 12.61% YoY to Rs176.76bn from Rs156.97bn in 2023.

Despite this, the cost of sales rose by 18.84% YoY to Rs142.69bn, leading to a 7.68% decline in gross profit, which stood at Rs34.06bn.

On the expense front, administrative costs surged by 34.27% YoY to Rs6.73bn, while distribution and marketing costs rose by 36.88% YoY to Rs9.59bn.

Furthermore, other expenses amounted to Rs1.13bn, although they dropped significantly by 63.25% compared to SPLY.

Other income and investment income also saw a downturn, decreasing by 60.73% and 38.04%, respectively.

Finance costs increased by 35.63% YoY to Rs18.36bn, further pressuring the company's bottom line.

Consequently, operating profit shrank by 31.56% to Rs19.79bn, and after accounting for finance costs, the company’s profit before tax fell drastically by 100.21% to a loss of Rs29.42m.

Tax expenses also declined by 65.36% YoY to Rs1.34bn.

As a result, the company registered a loss from continuing operations of Rs1.37bn in 2024.

Profit from discontinued operations, which contributed Rs96.28m in 2023, was absent this year, further weighing down overall results.

Attributable loss to the equity holders of the parent company stood at Rs2.84bn compared to a profit of Rs9.27bn in SPLY, marking a decline of 130.68%.

Meanwhile, the profit attributable to non-controlling interests rose by 21.05% to Rs1.46bn.

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