IPAK Group reports 12 times increase in EPS to Rs1.72 for FY 2025!
The Company announces cash dividend of Rs 0.60 per share i.e. 6% and 5 bonus shares for every 100 shares i.e. 5%.
KARACHI ( WEB NEWS )
IPAK group has recorded net profit of Rs. 664 million against loss of Rs 571 million last year, driven by enhanced efficiencies and cost control. Consolidated sales grew by 51% to Rs 34 billion resulted in higher capacity utilisation impacting profitability positively.
The Board of Directors has recommended a cash dividend of Rs.0.60 per share (equivalent to 6 %), alongside the issuance of 5% bonus shares. This combined pay-out underscores the Board’s confidence in the Company’s earnings resilience, healthy cash flows, and strong balance sheet.
Profit attributable to IPAK shareholders at Rs 1,202 million VS Rs 91 million in previous year. The group’s consolidated net profit at Rs 664 million was significantly impacted by a non cash deferred charge of Rs 458 million. The accounting adjustment elevated the effective tax burden far above the average corporate tax rate. Excluding this effect, consolidated profit after tax would have been PKR 1,122 million, while profit attributable to IPAK shareholders would have reached PKR 1,575 million. The deferred tax charge will rationalize over time, reflecting the underlying earnings strength of operations.
Company’s finance costs increased to PKR 2.22 billion, reflecting working capital requirements of new subsidiaries, but remained aligned with growth in volumes and sales.
During FY 2025, Consolidated EPS increased to PKR 1.72 from PKR 0.14 in the previous year, reflecting the strong contribution from newly expanded capacities. On a standalone basis, IPAK EPS stood at PKR 1.22 compared to PKR 2.0 in FY 2024, a result of the Company’s strategic shift towards exports, which carry lower immediate margins but reinforce long-term global positioning.
On a standalone basis, IPAK posted sales of PKR 15.6 billion and a net profit of PKR 851 million, supported by its strategic push into exports. Consolidated exports increased by more than four times to PKR 7.89 billion, representing 23% of total sales.
IPAK Group successfully expanding its footprint across the Middle East, Asia, Africa, the US, and Europe. Foreign exchange earnings have crossed USD 28.16 million during the current financial year underscoring the Group’s growing role in supporting national reserves through non-traditional exports.
All capital commitments relating to plant and machinery for the recent expansion through the Group’s two subsidiaries have been fully discharged, ensuring a strong balance sheet and securing capacity for long-term growth.