Merit Packaging Limited has returned to profitability for the financial year ended June 30, 2026, marking a significant improvement from the loss reported in the previous year. According to the company’s financial statements, Merit Packaging recorded a profit after tax of Rs123.6 million, compared with a loss of Rs599.7 million in FY2025. 283827

The company’s financial results were approved by its Board of Directors at a meeting held on September 29, 2026. The company also announced that its Annual General Meeting will take place on October 28, 2026, in Karachi. No cash dividend or bonus shares were announced alongside the results. 283827

Revenue Declines, but Profitability Improves

Merit Packaging’s net revenue stood at approximately Rs3.43 billion in FY2026, compared with Rs5.28 billion in the previous year. Despite the substantial decline in revenue, the company managed to improve its overall profitability.

Gross profit reached Rs59.6 million, reversing the gross loss of Rs28.7 million recorded in FY2025. The company also reported an operating profit of approximately Rs338.8 million, compared with an operating loss of Rs350.3 million a year earlier. 283827

A notable contribution came from other income, which increased to around Rs591.8 million from Rs27.8 million in FY2025. This significant increase helped offset pressure from the lower revenue base and other expenses.

Bottom Line Moves Into Positive Territory

Merit Packaging reported profit before taxation of approximately Rs193.4 million, compared with a loss before taxation of nearly Rs599.7 million in FY2025.

After taxation of around Rs69.8 million, the company posted a profit of Rs123.6 million for the year. Earnings per share also improved sharply, moving from a loss of Rs3.00 per share in FY2025 to earnings of Rs0.62 per share in FY2026. 283827

The turnaround represents a major change in the company’s financial position, although the lower level of revenue remains an important factor for investors to watch.

Financial Position Shows Changes in Assets and Liabilities

The company’s total assets stood at approximately Rs4.01 billion as of June 30, 2026, compared with Rs5.02 billion a year earlier. Property, plant and equipment were reported at around Rs2.19 billion.

Current assets declined to approximately Rs1.70 billion from Rs2.02 billion in FY2025. Meanwhile, trade debts stood at about Rs298.5 million, while cash and bank balances were approximately Rs10.3 million. 283827

On the liabilities side, current liabilities declined considerably, with trade and other payables reported at approximately Rs1.08 billion compared with Rs1.45 billion in the preceding year. Short-term borrowings also fell substantially from around Rs841.3 million to Rs157.6 million.

Cash Flow Remains an Area to Watch

Despite the reported accounting profit, Merit Packaging experienced negative cash flow from operating activities during FY2026. Net cash used in operating activities amounted to approximately Rs206 million, compared with net cash generated of Rs28.9 million in FY2025. 283827

The company, however, recorded strong net cash inflows from investing activities, largely reflecting Rs1 billion in proceeds from the disposal of assets held for sale. After financing activities and other movements, the company reported cash and cash equivalents of approximately negative Rs147.3 million at the end of the year. 283827

AGM Scheduled for October 28

Merit Packaging has scheduled its Annual General Meeting for Wednesday, October 28, 2026, at 3:00 p.m. in Karachi. The company said its share transfer books will remain closed from October 21 through October 28, 2026. 283827

Overall, FY2026 represents a significant turnaround for Merit Packaging. The move from a Rs599.7 million loss to a Rs123.6 million profit is encouraging, supported by improved gross and operating results as well as a substantial rise in other income. However, the sharp decline in revenue and negative operating cash flow remain important considerations as the company moves into the next financial year.