KARACHI: Pakistan Paper Products Limited (PSX: PPP) reported a strong financial performance for the nine months ended March 31, 2026, posting double-digit growth in both revenue and profitability despite higher operating expenses and taxation. The company’s Board of Directors approved the financial results in its meeting held on April 27, 2026, while announcing that no interim cash dividend, bonus shares, or right shares would be issued.

According to the company’s condensed interim financial statements, net sales increased to Rs1.349 billion during the first nine months of FY2026, compared with Rs1.280 billion in the corresponding period last year. Higher sales helped lift gross profit by nearly 18% to Rs259.08 million, up from Rs219.54 million a year earlier.

Operating profit also strengthened, rising to Rs173.00 million from Rs147.25 million in the same period last year. Although administrative, selling, and other operating expenses increased, the company benefited from improved business volumes and a notable decline in finance costs, which fell to Rs22.55 million from Rs31.74 million.

As a result, profit before taxation climbed to Rs151.63 million, compared with Rs117.36 million in the corresponding period of FY2025. After accounting for taxes, net profit reached Rs107.04 million, representing a 21.5% year-on-year increase from Rs88.10 million recorded during the same period last year. Earnings per share (EPS) improved to Rs13.38, up from Rs11.01.

For the third quarter alone, the company earned Rs52.56 million, compared with Rs58.18 million in the corresponding quarter of the previous year. Quarterly EPS stood at Rs6.57, compared with Rs7.27 last year, reflecting relatively softer earnings during the latest quarter despite stronger nine-month performance.

On the balance sheet, total assets expanded to Rs2.36 billion as of March 31, 2026, from Rs2.24 billion at the end of June 2025. Growth in trade receivables, inventories, and advances contributed to the increase in assets, while shareholders’ equity improved to Rs1.82 billion following higher retained earnings.

The Board of Directors did not recommend an interim cash dividend, bonus shares, right shares, or any other corporate action alongside the financial results.