⚡ Flash Summary
Packages Limited reported an increase in dividend income from group companies, rising to Rs 3,820 million for the nine months ended September 30, 2025, compared to Rs 2,932 million in the prior year. This growth is attributed to higher dividends from Hoechst Pakistan Limited, Packages Convertors Limited, Packages Real Estate (Private) Limited, and Nestle Pakistan Limited. Despite an increase in borrowings by Rs 6.3 billion for investments in group companies, finance costs decreased by 14% due to reduced interest rates. As a result, earnings for the period increased by 84% to Rs 2,367 million from Rs 1,284 million in the corresponding period of 2024, showcasing substantial growth.
📌 Key Takeaways
- 💰 Dividend income surged to Rs 3,820 million, a notable increase from Rs 2,932 million in 2024.
- 📈 Earnings for the period rose impressively by 84% to Rs 2,367 million, up from Rs 1,284 million in 2024.
- 💸 Finance costs saw a 14% decrease, despite a Rs 6.3 billion increase in borrowings.
- ⬆️ Basic earnings per share jumped to PKR 26.48, compared to PKR 13.65 in 2024.
- 🏢 Profit from operations increased to Rs 3,801 million, from Rs 2,811 million in 2024.
- 🏘️ Rental income increased to Rs 563 million, up from Rs 487 million in 2024.
- 📉 General expenses slightly decreased to Rs (582) million, compared to Rs (608) million in 2024.
- 🏦 Finance costs are at Rs (1,068) million, a decrease from Rs (1,245) million in 2024.
- 🧾 Levy and income tax increased to Rs (366) million, up from Rs (282) million in 2024.
- 📊 The company’s total equity grew to Rs 57,158.79 million, from Rs 55,218.54 million at the end of the previous year.
- 💼 Long-term investments increased to Rs 63,023.93 million, from Rs 59,630.41 million at the end of the previous year.
- 💸 Net cash inflow from operating activities was Rs 2,455.44 million, similar to Rs 2,445.04 million in 2024.
- 🏢 Current assets increased to Rs 4,796.76 million, from Rs 3,950.41 million at the end of the previous year.
- 🏦 Dividend income increased to Rs 1,499 million, from Rs 1,053 million in 2024, July – September.
🎯 Investment Thesis
BUY: Packages Limited is exhibiting strong financial performance with significant growth in dividend income and earnings. The reduction in finance costs and strategic investments in subsidiaries contribute to a positive outlook. The company’s focus on efficient operations and diversified portfolio positions it well for future growth. Based on the financial results and outlook, the price target could be 300 to 320 PKR.
Disclaimer: AI-generated analysis. Not financial advice.