PABC Set for Record Earnings in 2QCY25

Pak Aluminium Beverage Cans Ltd (PABC) is heading for its strongest quarter ever. The company is expected to report an earnings per share (EPS) of Rs 6.7 for the quarter ended June 2025, representing a 30% increase compared to the same period last year.

So, what’s driving this growth?

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Sales & seasonal demand

Summer months bring peak demand for beverages, and with them, higher sales of cans. PABC is expected to post record revenue this quarter, helped by a 15% rise in sales year-on-year.

Stable exports

Exports to Afghanistan were smoother this time compared to last year, when border unrest had hurt trade. This stability has given an extra boost to the company’s performance.

Higher margins & extra income

Margins have improved slightly (+2 percentage points QoQ), thanks to better pricing conditions. On top of that, PABC is earning strong income from its large cash reserves, with other income up 64% YoY. The company currently sits on a solid cash position of Rs 10.7 billion.

What’s next for investors?

While this quarter appears to be a record one, analysts remain cautious. They believe PABC’s long-term growth could slow down due to:

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• Normalization of taxes from 2027 onwards
• Weaker export outlook, as new competitors in Central Asia add capacity

However, investors will be watching closely for two things:

• Dividend resumption (as the company has the cash to do so)
• Any new investment or expansion plans

PABC is set to deliver its highest-ever quarterly earnings in 2QCY25, backed by strong sales, seasonal demand, and healthy finances. But the real question is whether this momentum can continue in the long run.

Source: JS Global

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →