Key Takeaways
- Merit Packaging Limited saw a 44.1% year-on-year rise in net sales to Rs.4,181.647 million in 2022.
- The company’s gross margin turned negative twice between 2020 and 2025 but recovered by the end of the period.
- Net profit remained elusive for Merit Packaging Limited throughout the financial years under review.
Merit Packaging Limited, a public limited company incorporated in Pakistan since 1980, has reported mixed financial performance over the last five years. The company’s principal activities include manufacturing and selling printing and packaging materials to various sectors such as food & beverages, surgical instruments, consumer goods, and textiles.
As of June 30, 2025, Merit Packaging Limited had a total of 199.96 million shares outstanding, held by 2114 shareholders. Associated companies, undertaking, and related parties hold the largest stake at 81.54 percent, followed by local general public with 14.18 percent, and NIT & ICP with a 2.30 percent share.
Despite a year-on-year decline in net profit for 2025, Merit Packaging Limited experienced an upward trajectory in its topline over the period under consideration. In 2021, the company’s revenue surged by 34.48 percent to Rs.2902.559 million, driven by a healthier sales volume as economic activities resumed after lockdowns.
However, the company struggled with negative gross margins in 2020 and 2021, which recovered slightly but turned negative again in 2025. Operating margin also remained in the negative territory until 2021 before rebounding only to fall back by year-end. The detailed performance review indicates that while top-line growth was robust, it did not translate into a healthier bottomline.
Administrative expenses decreased by 2.93 percent from 264 employees in 2020 to 206 employees in 2021, contributing to the reduction of operating losses. Distribution costs increased by 14.54 percent due to higher carriage charges as sales volume recovered. Other income significantly boosted the company’s performance, growing by 387.30 percent on various fronts including insurance claims and capital grants.
Despite these efforts, Merit Packaging Limited failed to register a gross profit in 2021 but managed to reduce its gross loss by 78.63 percent year-on-year. The operating loss narrowed down by 47.71 percent to Rs.217.75 million, leading to an 18.44 percent reduction in net loss to Rs.564.98 million. Loss per share also fell from Rs.8.59 in 2020 to Rs.6.84 in 2021.
In 2022, the company witnessed a further 44.1 percent year-on-year rise in net sales to Rs.4,181.647 million, supported by both price revisions and increased sales volume. This growth was pivotal for improving the company’s financial health but did not result in a net profit.
