Rising costs squeeze margins at International Packaging Films

International Packaging Films Ltd (PSX: IPAK) has reported a sharp fall in profitability for the nine months to March 2025, despite robust top‑line expansion fuelled by new capacity coming on‑stream. The company told analysts that consolidated net profit dropped 62% year‑on‑year to Rs309.9 million (earnings per share: Rs0.44) in the first nine months of fiscal year 2025, down from Rs823.4 million a year earlier. Operating performance was constrained by higher input costs and an unfavourable shift in product mix, even as revenue surged 66% to Rs26.1 billion over the same period.

Third‑quarter figures underscored that pressure: January–March sales slipped 3% to Rs4.08 billion, while gross profit declined 8% to Rs785 million and operating profit fell 12% to Rs673 million. Nevertheless, bottom‑line earnings for the quarter eked out a 6% rise to Rs255 million, helped by lower finance costs and one‑off items.

The market’s initial reaction was muted; IPAK’s share price edged 0.5% lower on the Pakistan Stock Exchange as investors digested the margin squeeze against the backdrop of a still‑expanding top line.