February 19, 2026 (MLN): Cherat Packaging Limited (PSX: CPPL) posted a net profit after tax of Rs87.12m for the half year ended December 31, 2025, marked a sharp 72.11% decline compared to Rs312.35m in the same period last year.

Earnings per share (EPS) fell to Rs1.77 from Rs6.36 in the corresponding half year of 2024. The Board of Directors approved an interim cash dividend of Re.1.00 per share, i.e., 10%, for the period.

The company's turnover grew 13.24% YoY to Rs7.38bn from Rs6.52bn, showing volume growth and pricing support amid steady demand in the packaging sector.

Cost of sales rose 14.14% to Rs6.78bn, outpacing revenue growth and resulting in a gross profit of Rs600.35m, up 3.99% from Rs577.29mn in the same period last year.

Distribution costs increased 10.39% to Rs173.74m, while administration expenses rose 19.17% to Rs107.35m, pressuring the bottom line.

Operating profit declined sharply by 47.39% to Rs343.07m, compared to Rs652.11m in the prior period, largely due to a significant contraction in other income.

Finance costs fell 34.94% to Rs175.02m from Rs269.02m, showing lower borrowing costs and improved debt management during the period.

Other expenses declined marginally by 2.42% to Rs24.31m, while other income dropped steeply by 86.14% to Rs48.12m from Rs347.19m, which was a primary drag on profitability compared to the prior period.

The company recorded a profit before income tax of Rs75.05m, down 80.24% YoY from Rs379.90m, with the period also impacted by minimum tax of Rs89.80mn.

Total income tax adjustments, including current, prior, and deferred components, resulted in a net tax credit that partially cushioned the decline, leading to the reported profit after tax of Rs87.12m.

The interim dividend of Re1.00 per share shows the company's continued commitment to shareholder returns despite the earnings pressure experienced during the half year.

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