Karachi, September 10, 2026: Pakistan Paper Products Limited has reported a significant improvement in profitability for the year ended June 30, 2026, despite a decline in net sales. The company also announced an 80% cash dividend, equivalent to Rs. 8 per share, reflecting its continued commitment to shareholder returns.
According to the company’s financial results, net sales stood at Rs. 1.734 billion during FY2026, compared with Rs. 1.914 billion in the previous year. However, gross profit increased to Rs. 374.9 million from Rs. 299.0 million, indicating improved gross profitability despite lower revenue.
The company’s operating profit rose to Rs. 254.1 million, compared with Rs. 197.8 million in FY2025. Finance costs also declined to Rs. 29.9 million from Rs. 38.0 million, supporting the improvement in bottom-line performance.
As a result, profit before tax increased to Rs. 225.3 million, compared with Rs. 161.5 million a year earlier. After accounting for income tax expense of Rs. 59.4 million, Pakistan Paper Products posted a profit of Rs. 165.9 million, up from Rs. 122.4 million in FY2025.
The improvement translated into higher earnings per share. Basic and diluted EPS increased to Rs. 20.73, compared with Rs. 15.30 in the previous year.
Shareholders to Receive Rs. 8 Per Share
The Board of Directors, meeting on September 9, 2026, recommended an 80% cash dividend of Rs. 8 per share. No bonus shares, right shares or other corporate action were announced.
The company said shareholders whose names appear in the Register of Members on October 16, 2026 will be entitled to the dividend. The Annual General Meeting is scheduled for October 21, 2026 at 10:30 a.m. at the company’s registered office in Karachi.
Equity Position Strengthens
Pakistan Paper Products’ revenue reserves increased to Rs. 845.9 million at June 30, 2026, compared with Rs. 717.9 million a year earlier. Total equity stood at approximately Rs. 1.875 billion at the year-end.
The statement of changes in equity also shows that the company recorded total comprehensive income of Rs. 163.7 million during FY2026 and paid a final cash dividend of Rs. 40 million relating to FY2025.
Cash Flow Remains an Area to Watch
The company generated Rs. 47.4 million in net cash from operating activities during FY2026, compared with Rs. 172.0 million in the previous year. It invested Rs. 42.7 million in property, plant and equipment during the year.
Financing activities resulted in a net cash outflow of Rs. 77.6 million, including repayments of long-term financing and dividend payments. Overall, cash and cash equivalents decreased by Rs. 72.9 million during the year.
Overall, Pakistan Paper Products delivered stronger profitability and higher earnings per share in FY2026, even as sales declined year-on-year. The improved operating profit, lower finance costs and substantial dividend recommendation highlight a year of stronger earnings performance for shareholders.
