KARACHI: IPAK Group has reported a remarkable turnaround for FY2025, posting a net profit of Rs 664 million compared to a loss of Rs 571 million in the previous year, as the company benefited from enhanced efficiencies, strict cost control, and higher capacity utilisation.
Consolidated earnings per share (EPS) surged 12 times to Rs 1.72 from Rs 0.14 last year, driven by a 51 percent increase in consolidated sales to Rs 34 billion. The robust sales growth was supported by a strategic push into exports, which rose more than fourfold to Rs 7.89 billion, representing 23 percent of total sales.
The Board of Directors recommended a cash dividend of Rs 0.60 per share (6pc) along with the issuance of 5 percent bonus shares. “This combined payout underscores the Board’s confidence in the Company’s earnings resilience, healthy cash flows, and strong balance sheet,” the company said.
Profit attributable to IPAK shareholders surged to Rs 1,202 million from Rs 91 million last year. The group’s consolidated profit was impacted by a non-cash deferred tax charge of Rs 458 million, which temporarily inflated the effective tax rate. Adjusting for this charge, consolidated profit after tax would have been Rs 1,122 million, while profit attributable to shareholders would have stood at Rs 1,575 million.
Finance costs rose to Rs 2.22 billion, reflecting higher working capital requirements from newly acquired subsidiaries, though the company noted these costs were aligned with growth in volumes and sales.
On a standalone basis, IPAK posted sales of Rs 15.6 billion and a net profit of Rs 851 million. Standalone EPS, however, declined to Rs 1.22 from Rs 2.00 a year earlier, which management attributed to its strategic shift towards exports that carry lower short-term margins but strengthen its global positioning.
The company highlighted that all capital commitments related to its recent expansion have been fully met, securing capacity for sustained long-term growth. IPAK Group continues to expand its footprint across the Middle East, Asia, Africa, the US, and Europe, with foreign exchange earnings crossing USD 28.16 million this year — a boost to the country’s non-traditional exports and foreign reserves.
Copyright Business Recorder, 2025
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