⚡ Flash Summary

Merit Packaging Limited held a corporate briefing session on November 10, 2025. The presentation highlighted the company’s history, customer portfolio, certifications, vision, mission, values, culture, CSR activities, sustainable packaging initiatives, and production facility. Financial performance was also presented, showing a decrease in sales and profitability for the year 2025 compared to 2024, along with a loss per share. The outlook addressed potential global conflict escalations and their impact on international prices.

📌 Key Takeaways

• Established in 1980, with over 4 decades of experience in packaging 📦.
• Customer portfolio includes local and multi-national corporations 🤝.
• Certifications include FSSC 22000, ISO 9001, and Halal Certification ✅.
• Vision to be a preeminent force in the packaging industry 🎯.
• Mission focused on client collaboration and sustainable solutions ♻️.
• CSR activities include blood donation and ration distribution 🩸.
• Sustainable packaging using FSC-certified board 🌳.
• Production capacity exceeds 900 MT per month 🏭.
• Sponsor support includes Rs. 1.4 billion injection in FY 2022 💰.
• Sales decreased to Rs. 5,280.932 million in 2025 from Rs. 6,638.477 million in 2024 📉.
• Gross profit/loss was negative Rs. (28.734) million in 2025 compared to Rs. 458.113 million in 2024 📉.
• Operating loss was Rs. (350.305) million in 2025, down from Rs. 248.569 million in 2024 📉.
• Loss per share was (Rs. 3.00) in 2025 📉.
• EBITDA dropped to (117) in 2025, compared to 485 in 2024 📉.
• Global conflict escalations impacting international prices is identified as a risk ⚠️.

🎯 Investment Thesis

Given the considerable decline in financial performance and the negative outlook, a SELL recommendation is warranted. The significant decrease in revenue and the transition to a net loss indicate substantial challenges. The company’s ability to recover profitability is uncertain. Also global conflict escalations are impacting international prices, this poses threat to earnings and potentially increases costs.