MERIT rebounds to Rs124m profit in FY26

Merit Packaging Limited swung to a net profit of Rs123.64m for the year ended June 30, 2026, according to Mettis Global, compared with a net loss of Rs599.67m a year earlier. Earnings per share stood at Rs0.62, against a loss per share of Rs3.00 in FY25. The company attributed the reversal mainly to a sharp rise in non-operating income, cost controls and lower debt-servicing costs.

Net revenue declined 35% to Rs3.43bn from Rs5.28bn, but cost of sales fell 37% to Rs3.37bn, lifting gross profit to Rs59.58m from a gross loss of Rs28.73m. Other income climbed to Rs591.78m from Rs27.80m, and operating profit reached Rs338.80m, up from an operating loss of Rs350.30m. Financial charges fell 47% to Rs97.21m, compared with Rs183.07m a year earlier.

After a levy of Rs48.20m, profit before taxation stood at Rs193.40m, and a taxation charge of Rs69.76m brought net profit to Rs123.64m. Overheads also eased, with general and administrative expenses down 10% to Rs192.70m and selling and distribution expenses down 28% to Rs89.62m.