Roshan Packages sees 2.5x profit growth in H1FY25

February 26, 2025 (MLN): Roshan Packages Limited (PSX: RPL) reported a 152% surge in profitability for the half-year ended December 31, 2024, with its profit rising to Rs55 million from Rs22mn in the same period last year.

RPL reported an earnings per share (EPS) of Rs0.39, compared to Rs0.15 in the previous year.

This sharp rise comes despite a decline in revenue and operating profit, driven by a substantial reduction in finance costs and tax expenses.

According to the company’s consolidated condensed interim statement of profit and loss (un-audited), revenue from contracts with customers stood at Rs5.4 billion, marking a 16% decline from the Rs6.4bn reported in 2023.

After accounting for sales tax, the net revenue fell to Rs4.5bn, down 15.6% year-on-year.

The cost of revenue also witnessed a reduction of 15%, bringing the gross profit to Rs356.6mn, a decline of 20.3% from the previous year.

Administrative expenses surged by 30.8% to Rs167.3mn, reflecting higher operational costs.

Meanwhile, the company recorded a slight decline in the provision for expected credit losses, which stood at Rs35.7mn, down 13%.

Selling and distribution expenses increased marginally by 2.6% to Rs60mn, while other operating expenses rose by 18.4% to Rs20mn.

Operating profit for the period fell by 28.6% to Rs144.6mn, primarily due to lower revenue and increased administrative costs. Other income declined by 23% to Rs37.8mn.

However, the most notable relief came from a substantial 47% reduction in finance costs, which dropped to Rs87.7mn from Rs165.6mn in the same period last year.

The company's profit before taxation increased by 6.3% to Rs91.5mn, supported by lower finance costs.

Additionally, taxation expenses plummeted by 43% to Rs36.5mn, contributing significantly to the bottom-line growth.

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