⚡ Flash Summary

Macpac Films Limited (MACFL) reported a loss of PKR 19.34 million for the quarter ended September 30, 2025, compared to a profit of PKR 7.45 million in the same period last year. Revenue decreased by 6.96% year-over-year to PKR 1,372.42 million. The loss per share (LPS) was PKR 0.33, versus earnings per share (EPS) of PKR 0.13 in the prior year. No cash dividend, bonus shares, or right shares were recommended by the board.

📌 Key Takeaways

• 📉 MACFL reported a loss after tax of PKR 19.34 million for Q3 2025, a significant downturn from a profit of PKR 7.45 million in Q3 2024.
• Revenue from contracts with customers decreased by 6.96% to PKR 1,372.42 million from PKR 1,475.07 million year-over-year.
• 🚫 The company’s earnings per share (EPS) turned negative, reporting a loss per share (LPS) of PKR 0.33 compared to an EPS of PKR 0.13 in the corresponding quarter of the previous year.
• Gross profit increased by 4.27% to PKR 176.12 million from PKR 168.90 million year-over-year.
• Operating profit declined significantly by 43.09% to PKR 21.46 million from PKR 37.70 million.
• Finance costs increased by 20.06% to PKR 31.87 million from PKR 26.54 million.
• Other income increased to PKR 8.22 million from PKR 6.35 million.
• Administrative expenses increased by 28.56% to PKR 100.76 million from PKR 78.38 million.
• Marketing and distribution expenses increased to PKR 49.37 million from PKR 45.88 million.
• No cash dividend was declared for the quarter ended September 30, 2025.
• 💰 Cash and bank balances decreased to PKR 57.53 million as of September 30, 2025, compared to PKR 65.09 million as of June 30, 2025.
• ⚠️ The company experienced net cash outflow from operating activities of PKR 77.10 million, compared to an inflow of PKR 7.22 million in the same period last year.
• ❌ No bonus or right shares were announced.
• Total assets decreased slightly to PKR 5,262.42 million from PKR 5,268.98 million since June 30, 2025.

🎯 Investment Thesis

Given the company’s current financial performance, including declining revenues, a shift to a loss, increasing finance costs, and negative cash flow, a SELL recommendation is warranted. The company’s operational inefficiencies and increasing expenses raise concerns about its long-term sustainability. The lack of dividend announcement further indicates financial constraints. The price target will be calculated when there is a clear picture with more stable financials.