Karachi: International Packaging Films Limited has issued its annual financial report for the year ending June 30, 2026, showcasing a notable increase in profitability despite a decrease in total assets, according to the company's unconsolidated statement of financial position and statement of profit or loss.
The report, dated October 5, 2026, reveals a decline in total assets from Rs. 27.06 billion in 2025 to Rs. 24.82 billion in 2026. This reduction is primarily attributed to changes in current assets, which fell from Rs. 8.97 billion to Rs. 7.36 billion. Notable decreases in trade receivables from Rs. 4.87 billion to Rs. 2.84 billion and other receivables from Rs. 719.60 million to Rs. 586.89 million were observed.
Meanwhile, the company's non-current assets also saw a reduction from Rs. 18.09 billion in 2025 to Rs. 17.45 billion in 2026. The decrease was largely due to the settlement of a long-term loan to subsidiaries, which was Rs. 1.58 billion in 2025 but is no longer present in 2026. However, long-term investments in subsidiaries increased significantly from Rs. 13.95 billion to Rs. 14.95 billion.
Equity and liabilities also experienced changes. Total shareholders' equity rose from Rs. 14.84 billion to Rs. 15.72 billion, driven by an increase in unappropriated profits from Rs. 2.11 billion to Rs. 2.99 billion. The issued, subscribed, and paid-up capital increased from Rs. 7.00 billion to Rs. 7.35 billion. Conversely, the share premium reduced from Rs. 2.47 billion to Rs. 2.12 billion.
Current liabilities decreased from Rs. 10.48 billion to Rs. 6.94 billion, reflecting a significant reduction in short-term borrowings from Rs. 6.18 billion to Rs. 3.87 billion. Trade and other payables also dropped from Rs. 3.32 billion to Rs. 2.03 billion.
According to the unconsolidated statement of profit or loss, the company reported a revenue decline from Rs. 15.56 billion in 2025 to Rs. 13.35 billion in 2026. However, cost of sales also decreased from Rs. 12.88 billion to Rs. 10.27 billion, resulting in an improved gross profit of Rs. 3.08 billion, up from Rs. 2.69 billion last year.
Operating profit saw a significant increase, reaching Rs. 3.00 billion from Rs. 2.60 billion the previous year. A notable factor in the improved financial performance was the gain on remeasurement (SIDC), totaling Rs. 194.44 million, which was not present in 2025. Finance costs were reduced from Rs. 1.32 billion to Rs. 840.13 million.
The profit before income tax rose to Rs. 2.16 billion from Rs. 1.28 billion, marking a big move in profitability. After accounting for income tax expenses, which rose from Rs. 431.74 million to Rs. 843.79 million, the profit for the year after taxation was reported at Rs. 1.32 billion, up from Rs. 850.99 million in 2025, representing a significant move in net profit.
According to information available from the Pakistan Stock Exchange (PSX), International Packaging Films Limited has demonstrated resilience and adaptability in a challenging economic environment. The company's earnings per share increased from Rs. 1.16 (restated) to Rs. 1.79, further underscoring its financial growth in 2026.