Packages Limited has reported a sharp improvement in consolidated profitability for the six months ended June 30, 2026, as higher revenue and stronger operating performance helped the company move from a loss to a substantial profit.
Packages Limited and its subsidiaries recorded consolidated net revenue of Rs108.30 billion during the first half of 2026, compared with Rs97.16 billion in the same period last year. Gross profit also increased significantly to Rs26.06 billion, up from Rs20.15 billion a year earlier.
The improvement continued at the operating level. Consolidated operating profit reached Rs16.78 billion, compared with Rs10.51 billion in the first half of 2025. Investment income also climbed sharply to Rs935.51 million from Rs109.75 million, while other income increased to Rs1.87 billion from Rs631.50 million.
Profitability rebounds strongly
One of the most notable developments was the company’s return to profitability. Packages Limited posted consolidated profit of Rs5.45 billion for the six-month period, compared with a loss of Rs336.80 million in the corresponding period of 2025.
Profit attributable to equity holders of the parent company stood at Rs3.78 billion, against a loss of Rs1.30 billion last year. Basic earnings per share improved to Rs42.34, compared with a loss per share of Rs14.56 in the first half of 2025.
The company also delivered a stronger second quarter. Consolidated profit for the three months ended June 30, 2026, reached Rs4.19 billion, compared with a loss of Rs524.68 million in the same quarter last year.
Stronger comprehensive income
The company’s overall financial performance was further supported by gains recorded through other comprehensive income. Consolidated total comprehensive income for the six-month period amounted to Rs6.62 billion, compared with a comprehensive loss of Rs4.36 billion in the same period of 2025.
The improvement included a positive change in the fair value of investments and other movements related to foreign operations and associates.
Cash flow remains an important focus
The consolidated cash flow statement shows that the group generated Rs15.35 billion in cash from operations, compared with Rs11.56 billion during the same period last year. After finance costs, taxes and other operating payments, net cash inflow from operating activities stood at Rs2.27 billion, substantially higher than Rs375 million a year earlier.
At the same time, the group continued to invest in its operations. Capital expenditure amounted to Rs5.07 billion during the period, although this was lower than the Rs7.84 billion spent in the first half of 2025.
Standalone performance
On a standalone basis, Packages Limited reported profit of Rs1.36 billion for the six months ended June 30, 2026, compared with Rs1.40 billion in the same period last year. Dividend income rose to Rs3.03 billion from Rs2.32 billion, while rental income increased to Rs429.43 million from Rs370.30 million.
The standalone balance sheet also showed total equity of Rs57.63 billion at June 30, 2026, compared with Rs56.44 billion at the end of December 2025.
No cash dividend announced
Despite the improved consolidated profitability, the company announced no cash dividend, bonus shares or right shares alongside the half-year results. The board approved the unaudited condensed interim financial statements at its meeting held on August 27, 2026.
Overall, Packages Limited’s first-half results point to a significant improvement in the group’s earnings position. The combination of higher revenue, stronger gross and operating profits, increased investment income and improved operating cash generation marks a considerably stronger performance compared with the first half of 2025.
