PAKOXY profit soars 76% in Q1CY26
28-Apr-2026
MettisGlobal
April 28, 2026 (MLN): Pakistan Oxygen Limited (PSX: PAKOXY) reported
a spectacular 76% surge in its net profit for the first quarter ended March 31,
2026, reaching Rs690.06m compared to Rs391.46m in the corresponding period last
year.
Reflecting this robust bottom-line expansion, the company's
basic and diluted earnings per share (EPS) skyrocketed to Rs7.92 from Rs4.49 in
Q1 2025.
The primary catalyst for this phenomenal growth was a strong
top-line expansion combined with excellent cost control.
PAKOXY’s net sales posted a solid 23% year-on-year increase,
rising to Rs3.61bn from Rs2.95bn.
Meanwhile, the cost of sales was kept remarkably restrained,
growing by just 4% to Rs2.04bn.
Because revenue growth significantly outpaced the rise in
direct production costs, the company’s gross profit secured a massive 58%
expansion, leaping to Rs1.57bn up from Rs995.62m in the prior year.
On the operational front, the company did face mounting
overhead pressures.
Distribution and marketing expenses more than doubled,
jumping 107% to Rs144.52m, while administrative expenses rose by 27% to
Rs120.86m.
Other operating expenses also spiked by 74% to Rs98.20m,
pushing total operating expenses up by 64%.
Additionally, secondary support dwindled as "other
income" plummeted 66% to just Rs4.02m.
However, the sheer strength of the gross margin expansion
easily absorbed these higher costs, driving the operating profit up by 55% to
Rs1.21bn.
Below the operating line, PAKOXY benefited from a
significant reduction in debt-servicing costs. The company successfully slashed
its finance cost by 45%, dropping it to Rs78.61m from Rs142.06m.
This relief in financial charges, combined with the absence
of a minimum tax differential levy (which cost Rs18.46m last year), propelled
the profit before taxation up by an impressive 82% to Rs1.14bn.
Even after accounting for a sharply higher taxation expense
of Rs446.04m (up 91% year-on-year), the company securely closed the quarter
with a 76% leap in final net profit, settling at Rs690.06m.
|
STATEMENT OF PROFIT OR
LOSS FOR THE THREE MONTH ENDED MARCH 31, 2026 (Rs.000) |
|||
|
Description |
2026 |
2025 |
change % |
|
Gross
sales |
4,167,739 |
3,389,872 |
23% |
|
Sales
tax |
(553,419) |
(441,415) |
25% |
|
Net
sales |
3,614,320 |
2,948,457 |
23% |
|
Cost
of sales |
(2,040,050) |
(1,952,840) |
4% |
|
Gross
profit |
1,574,270 |
995,617 |
58% |
|
Distribution
and marketing expenses |
(144,516) |
(69,764) |
107% |
|
Administrative
expenses |
(120,857) |
(94,952) |
27% |
|
Other
operating expenses |
(98,199) |
(56,444) |
74% |
|
Operating
profit before other income |
1,210,698 |
774,457 |
56% |
|
Other
income |
4,018 |
11,689 |
-66% |
|
Operating
profit |
1,214,716 |
786,146 |
55% |
|
Finance
cost |
(78,609) |
(142,057) |
-45% |
|
Profit
before levy and taxation |
1,136,107 |
644,089 |
76% |
|
Minimum
tax differential - levy |
- |
(18,463) |
|
|
Profit
before taxation |
1,136,107 |
625,626 |
82% |
|
Taxation |
(446,043) |
(234,165) |
90% |
|
Profit
for the period |
690,064 |
391,461 |
76% |
|
Earnings
per share - basic and diluted (Rupees) |
7.92 |
4.49 |
76% |
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