KARACHI: Century Paper & Board Mills Limited (PSX: CEPB) has reported a net loss for the nine months ended March 31, 2026, as rising finance costs and higher tax-related charges outweighed the benefits of revenue growth. The company’s Board of Directors approved the unaudited financial results in its meeting held on April 28, 2026.
According to the financial statements, Century Paper posted a net turnover of Rs29.94 billion during the nine-month period, reflecting an increase from Rs28.98 billion recorded in the corresponding period last year. Despite the improvement in sales, gross profit declined to Rs1.77 billion from Rs2.18 billion, indicating pressure on production costs and margins.
The company reported an operating profit of Rs951.36 million, compared with Rs1.46 billion in the same period last year. A significant finance cost of Rs860.68 million, coupled with a minimum tax differential levy of Rs376.03 million, eroded profitability during the period.
As a result, Century Paper recorded a net loss of Rs335.64 million for the nine months ended March 31, 2026, compared with a net profit of Rs69.74 million in the corresponding period of the previous year. This translated into a loss per share (LPS) of Rs0.84, versus an earnings per share (EPS) of Rs0.17 a year earlier.
For the quarter ended March 31, 2026, the company generated net sales of Rs10.28 billion, up from Rs9.18 billion in the same quarter last year. Gross profit also improved to Rs792.71 million from Rs380.36 million. However, higher finance costs and taxation resulted in a quarterly net loss of Rs64.35 million, although this was significantly lower than the Rs130.82 million loss reported in the corresponding quarter of 2025.
On the balance sheet, total assets increased to Rs33.35 billion as of March 31, 2026, compared with Rs29.90 billion at the end of June 2025. Inventories, trade receivables, and stock-in-trade all recorded notable increases, while shareholders’ equity declined to Rs13.08 billion due to the accumulated loss during the period.
The company’s cash flow statement showed that net cash used in operating activities narrowed to Rs458.17 million, a significant improvement from Rs2.17 billion used in the corresponding period last year. However, continued capital expenditure and debt repayments kept overall cash flows under pressure.
The latest results highlight that while Century Paper & Board Mills has managed to increase revenue, elevated financing expenses, taxation, and margin pressures continue to weigh on the company’s bottom line as it navigates a challenging operating environment.
