IPAK Group Swings to Rs. 664 Million Profit in FY25

IPAK Group has announced a remarkable turnaround. The company recorded a net profit of Rs. 664 million, compared to a loss of Rs. 571 million last year, driven by enhanced efficiencies and strict cost control, posting a 12 times increase in earnings per share (EPS) to Rs. 1.72 for FY 2025. Consolidated sales rose 51% to Rs. 34 billion, leading to higher capacity utilization and a positive impact on profitability. The Board of Directors recommended a cash dividend of Rs. 0.60 per share (equivalent to 6%), along with the issuance of 5% bonus shares. This combined payout highlights the Board’s confidence in the company’s earnings resilience, healthy cash flows, and strong balance sheet. Profit attributable to IPAK shareholders stood at Rs. 1.2 billion versus Rs. 91 million in the previous year. The group’s consolidated net profit of Rs. 664 million was significantly affected by a non-cash deferred charge of Rs. 458 million, which pushed the effective tax burden well above the average corporate rate. Excluding this impact, consolidated profit after tax would have been Rs. 1.12 billion, while profit attributable to shareholders would have reached Rs. 1.57 billion. The company noted that the deferred tax charge will rationalize over time, reflecting the true earnings strength of operations. Finance costs rose to Rs. 2.22 billion, reflecting working capital requirements of new subsidiaries, but remained aligned with growth in sales volumes. During FY 2025, consolidated EPS climbed to Rs. 1.72 from Rs. 0.14 last year, supported by contributions from newly expanded capacities. On a standalone basis, IPAK reported EPS of Rs. 1.22 compared to Rs. 2.0 in FY 2024, a decline attributed to the company’s strategic pivot toward exports, which carry lower short-term margins but reinforce long-term global positioning. On a standalone basis, IPAK posted sales of Rs. 15.6 billion and a net profit of Rs. 851 million, supported by its push into international markets. Consolidated exports surged more than four times to Rs. 7.89 billion, representing 23% of total sales. The group also reported that foreign exchange earnings surpassed $28.16 million during FY 2025, underlining its growing role in supporting Pakistan’s reserves through non-traditional exports. IPAK has expanded its footprint across the Middle East, Asia, Africa, the US, and Europe. All capital commitments for plant and machinery tied to recent expansions through its two subsidiaries have been fully discharged, ensuring a strong balance sheet and securing long-term growth capacity