Karachi: Merit Packaging Limited, a prominent entity in the packaging sector, released its Annual Report for 2026 on October 15, revealing notable shifts in its financial standing compared to the previous year. The report highlights both challenges and improvements faced by the company in its recent fiscal performance.
The Statement of Financial Position indicates a decline in total assets to 4.01 billion rupees from 5.02 billion rupees in 2025. This shift is primarily attributed to a decrease in both non-current and current assets, with non-current assets falling to 2.31 billion rupees from 2.50 billion rupees, and current assets dropping to 1.70 billion rupees from 2.02 billion rupees. Additionally, assets classified as held for sale, previously valued at 494.34 million rupees, were absent in the 2026 report.
In contrast, the company's total equity saw an increase, rising to 2.39 billion rupees from 2.27 billion rupees, despite a reduction in capital reserves to 1.66 billion rupees. Revenue reserves demonstrated improvement, moving from a negative balance of 1.66 billion rupees to negative 1.27 billion rupees.
The liabilities section shows a substantial reduction, with total liabilities decreasing to 1.62 billion rupees from 2.74 billion rupees. This decrease is largely due to a significant reduction in current liabilities, which fell to 1.24 billion rupees from 2.36 billion rupees, driven by a decrease in trade and other payables as well as short-term borrowings.
According to information available from the Pakistan Stock Exchange (PSX), the company's revenue fell to 3.43 billion rupees from 5.28 billion rupees, marking a very large or significant move. Despite this, the company managed to achieve a gross profit of 59.58 million rupees, shifting from a loss of 28.73 million rupees in 2025.
The report also outlines a notable increase in other income, which surged to 591.78 million rupees from 27.80 million rupees, contributing to an operating profit of 338.80 million rupees, a reversal from the operating loss of 350.30 million rupees in the previous year. Financial charges were reduced to 97.21 million rupees from 183.07 million rupees.
The profit before taxation was recorded at 193.40 million rupees, contrasting with a loss of 599.67 million rupees in 2025. After accounting for taxation, the profit for the year was reported at 123.64 million rupees, showcasing a recovery from the previous year's loss.
Earnings per share improved to 0.62 rupees, a positive turnaround from the loss of 3.00 rupees per share reported in 2025. The financial data from Merit Packaging Limited reflects a period of transformation, with strategic adjustments contributing to the company's evolving market position.