⚡ Flash Summary

EcoPack Ltd’s FY2025 annual report showcases a year of substantial growth and profitability. The company achieved its highest profit after tax of Rs. 340 million, a 163% increase from the previous year. Revenue grew by 16% to Rs. 7.2 billion, driven by increased sales volumes of both bottles and preforms. The Board of Directors has recommended a cash dividend of Rs. 2.0 per share, up from Rs. 1.5 per share in FY2024, signaling confidence in the company’s financial health and future prospects.

📌 Key Takeaways

• 🚀 Highest profit after tax of Rs. 340 million, a 163% increase year-over-year.
• 📈 Revenue up 16% to Rs. 7.2 billion, exceeding prior expectations.
• 💰 Cash dividend increased to Rs. 2.0 per share from Rs. 1.5 in FY24.
• ✅ Long-term credit rating affirmed at ‘BBB+’ and short-term at ‘A2’ with a stable outlook.
• 🌱 Gross profit reached Rs. 1.2 billion, a significant increase from Rs. 775 million in FY24.
• ⬆️ Operating profit surged by 64% to Rs. 761.9 million.
• 👍 Earnings per share (EPS) rose to Rs. 7.04 compared to Rs. 2.67 in the previous fiscal year.
• ✅ Capacity utilization improved, achieving 79% in preforms and 73% in bottles.
• 💲 Contributed Rs. 1.4 billion to the National Exchequer, showcasing commitment to economic development.
• 📉 Financial charges decreased by 22% due to reduced interest rates by the State Bank of Pakistan.
• 🤝 Debt-to-equity ratio remains healthy at 12:88.
• 🌍 Venturing to explore new horizons of ‘larger PET bottles’ for existing and new industries and customers.
• 🚻 Gender pay gap improved, reducing from 27% to 12% for the mean and 22% to 7% for the median.

🎯 Investment Thesis

EcoPack is a “BUY”. The company’s strong FY25 results, driven by revenue growth and efficiency gains, indicate that the business is performing well and has potential for further growth. The increase in dividend and healthy financials is also positive. Therefore, a buy recommendation is appropriate, with a target price based on this potential. As an aside, environmental and health impacts should be explored in future periods.