Cherat Packaging Limited has reported a strong improvement in its financial performance for the year ended June 30, 2026, with net profit rising sharply to Rs651 million, compared with Rs356.4 million recorded in the previous year.

The company’s financial results were approved by its Board of Directors at a meeting held on August 18, 2026. Alongside the improved earnings, the board recommended a final cash dividend of Rs3 per share, taking the total cash dividend for the year to Rs4 per share, including the interim dividend of Rs1 per share.

Revenue and Profitability Improve

According to the financial statements, Cherat Packaging’s net turnover increased to approximately Rs15.03 billion in FY2026 from Rs13.01 billion a year earlier. This represents growth of around 15.5%, indicating stronger sales during the year.

The company also posted a substantial improvement in gross profit, which increased to approximately Rs1.88 billion, compared with Rs1.02 billion in FY2025. Operating profit rose to around Rs1.47 billion from Rs886.4 million.

Profit before tax and levies reached approximately Rs1.09 billion, compared with Rs423.8 million in the preceding year. After taxation, net profit stood at Rs651 million, up from Rs356.4 million.

Earnings Per Share Nearly Double

The strong bottom-line growth was also reflected in the company’s earnings per share. Basic and diluted EPS increased to Rs13.26 in FY2026 from Rs7.26 in FY2025, representing an increase of more than 80%.

The improvement in earnings provides a stronger financial position for shareholders and supports the board’s decision to recommend a higher overall cash distribution for the year.

Dividend and Annual General Meeting

Cherat Packaging has recommended a final cash dividend of Rs3 per share, equivalent to 30%, in addition to the Rs1 per share interim dividend already paid during the year. No bonus shares or right shares have been proposed.

The company’s Annual General Meeting (AGM) is scheduled for October 8, 2026, at 11:30 a.m. at its registered office in Peshawar.

The share transfer books will remain closed from October 1 to October 8, 2026, with September 30, 2026 set as the entitlement date for the dividend, subject to the terms outlined in the company’s announcement.

Balance Sheet Expands

Cherat Packaging’s total assets increased to approximately Rs19.18 billion as of June 30, 2026, from Rs15.62 billion at the end of the previous financial year.

The company reported higher property, plant and equipment as well as increased inventories and trade debts. Long-term financing also rose during the year, reflecting the company’s investment and financing requirements.

Cash Flow Remains an Area to Watch

Despite the improvement in profitability, the company’s cash position came under pressure during the year. Net cash generated from operating activities amounted to approximately Rs49.9 million, compared with Rs815.4 million in FY2025.

Cherat Packaging recorded significant cash outflows from investing activities, including approximately Rs1.76 billion in additions to property, plant and equipment. Financing activities generated net cash of about Rs673.8 million, but the company ended the year with cash and cash equivalents of approximately negative Rs1.63 billion, compared with negative Rs537.5 million a year earlier.

Strong FY2026 Performance

Overall, Cherat Packaging’s FY2026 results point to a significant improvement in profitability, supported by higher turnover and stronger operating performance. The sharp increase in net earnings and EPS, coupled with the proposed Rs3 final dividend, provides a positive picture for shareholders.

At the same time, the company’s increased investment in property, plant and equipment and the weaker cash-flow position will remain important areas for investors to monitor as Cherat Packaging moves into the new financial year.