EcoPack Reports Strongest-Ever Profit as Margins and Efficiency Improve
EcoPack Limited delivered a strong financial performance during the year ended June 30, 2026, achieving its highest-ever annual profit after tax despite a decline in overall revenue. According to the company’s Annual Report 2026, the PET packaging manufacturer remained resilient amid challenging economic conditions, supply-chain disruptions and volatility in raw material prices. 283767
The company recorded net revenue of Rs6.51 billion during FY2026, compared with Rs7.18 billion in the previous year, representing a decline of 9.3%. The lower topline was primarily linked to a 13% decline in bottle sales volumes, while preform sales increased by 13%. 283767
Despite the revenue contraction, EcoPack significantly improved its profitability. Gross profit increased to Rs1.345 billion, compared with Rs1.203 billion in FY2025, while the gross profit margin improved from 17% to 21%. The company attributed the improvement to higher preform volumes as well as better cost and operational efficiencies. 283767
Operating profit also rose by nearly 11% to Rs845.2 million, compared with Rs762 million a year earlier. The operating margin improved to approximately 13%, reflecting stronger preform sales and disciplined cost management.
A reduction in financial charges provided another boost to the bottom line. Finance costs fell 22% to Rs148 million, from Rs189.7 million in FY2025, supported by lower interest rates, more efficient utilization of working-capital facilities and improved bank spreads. 283767
As a result, profit before tax climbed 21.8% to Rs697.2 million, while profit after tax increased 22.1% to Rs414.9 million, compared with Rs339.8 million in the preceding year. Earnings per share also improved to Rs8.60 from Rs7.04. 283767
Investment in Capacity and Energy Efficiency
EcoPack continued to invest in its future growth. During FY2026, management implemented a project to enhance preform production capacity and completed a 2 MW solar energy project aimed at reducing electricity costs. Both projects entered commercial production in FY2027, with the company expecting their benefits to contribute going forward. 283767
The company’s production data also highlights the growing importance of preforms. Preform production increased to about 558.4 million units, compared with 540.4 million in FY2025, taking capacity utilization from 79% to 82%. Bottle production, however, fell to around 213.9 million units from 248.4 million units. The annual report attributes the pressure on bottle production and sales partly to floods and the escalation of the Middle East conflict, which contributed to higher raw-material prices and weaker market demand. 283767
Focus on Future Growth
Looking ahead, EcoPack remains cautiously optimistic. The company expects continued growth in the soft-drinks and bottled-water sectors, particularly from smaller PET packaging formats ranging from 250ml to 500ml. The report notes that changing consumer lifestyles and a younger, mobile population are supporting demand for smaller “on-the-go” packs. 283767
Management plans to focus on strengthening its core operations, improving efficiency, maintaining financial discipline and evaluating opportunities for capacity optimization, product and customer diversification, and long-term investments.
At the same time, the company remains mindful of risks. Supply-chain disruptions, volatile crude oil prices, inflation and potential pressure on consumer purchasing power could affect future demand and production costs. 283767
For shareholders, the Board has recommended a 30% final cash dividend, equivalent to Rs3 per ordinary share, for FY2026, subject to approval at the Annual General Meeting scheduled for October 28, 2026. 283767
Overall, EcoPack’s FY2026 results demonstrate that stronger margins, operational efficiency, lower financing costs and growth in preform sales enabled the company to deliver record profitability even as revenue declined. With additional preform capacity and solar power now operational, the company enters FY2027 with a stronger platform for improving efficiency and pursuing future growth.
