KARACHI: Cherat Packaging Limited (PSX: CPPL) reported a net profit of Rs114.8 million for the nine months ended March 31, 2026, reflecting a significant decline from Rs397.6 million recorded during the same period last year. Earnings per share (EPS) stood at Rs2.34, compared with Rs8.10 a year earlier.
Despite the lower profitability, the company achieved 11.07% growth in net sales, with turnover rising to Rs11.07 billion from Rs9.83 billion in the corresponding period of 2025. The increase was primarily driven by higher sales volumes, particularly in the Flexible Packaging Division, as the company continued to focus on operational efficiency, product diversification, and strengthening customer relationships.
Management attributed the decline in earnings mainly to the absence of one-off gains recorded in the previous year, including profits from the sale of paper sack production lines and tax credits under Section 65B of the Income Tax Ordinance. In addition, global supply chain disruptions and higher raw material costs—exacerbated by geopolitical tensions during the period—placed considerable pressure on margins.
The company noted that despite shortages of critical raw materials, it successfully maintained supplies to customers by effectively managing its operations during a challenging business environment. Gross profit remained relatively stable at Rs883.9 million, while operating profit declined to Rs489.5 million from Rs869.0 million a year earlier.
Cherat Packaging also highlighted progress on its expansion initiatives. Installation and commissioning of a new Barrier Film Extrusion Line are underway, a project expected to significantly increase production capacity in the Flexible Packaging Division. The company is also nearing completion of a 2.7-megawatt solar power project, which is expected to reduce energy costs and support its long-term sustainability objectives.
Looking ahead, the company remains optimistic despite persistent economic and geopolitical uncertainties. Management believes that continued investment in production capacity, operational efficiencies, and customer-focused strategies will help safeguard market share and improve financial performance over the long term.
