{"id":9380,"date":"2025-05-29T18:19:54","date_gmt":"2025-05-29T13:19:54","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9380"},"modified":"2025-05-29T18:20:04","modified_gmt":"2025-05-29T13:20:04","slug":"following-solid-earnings-can-pabc-continue-rising-in-2025","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/following-solid-earnings-can-pabc-continue-rising-in-2025\/","title":{"rendered":"Following solid earnings, can PABC continue rising in 2025?"},"content":{"rendered":"\n

Pakistan Aluminium Beverage Cans Limited (PABC<\/a>)<\/strong>, the country\u2019s first and only manufacturer and exporter of aluminium beverage cans, reported a resilient performance for CY24 and 1QCY25. Despite export headwinds and margin pressures, the company posted double-digit earnings growth<\/strong>, thanks to strong operational execution and growing local demand.<\/p>\n\n\n\n

Let\u2019s dive into the key highlights from the recent corporate briefing session.<\/p>\n\n\n\n

CY24: strong earnings growth on the back of robust exports<\/h2>\n\n\n\n

In CY24, PABC recorded a 17% year-over-year growth in revenue<\/strong>, reaching PKR 23 billion<\/strong>. Exports were the star of the year, contributing 63% of total sales<\/strong>, rising by 53% YoY to PKR 14.4 billion<\/strong>. This export-led growth reflects PABC\u2019s strong position in regional markets, although management highlighted challenges ahead.<\/p>\n\n\n\n

On the bottom line, net profit rose to PKR 6 billion<\/strong>, up from PKR 5 billion last year. As a result, EPS climbed to PKR 16.9\/share<\/strong> from PKR 13.9\/share. Despite some margin compression due to cost pressures, net profit margins slightly improved<\/strong>, showcasing efficient cost management.<\/p>\n\n\n\n

1QCY25: earnings jump despite export challenges<\/h2>\n\n\n\n

In 1QCY25, PABC maintained its momentum. Revenue stood at PKR 4.65 billion<\/strong>, almost flat compared to the same period last year. But the real story was in profitability:<\/p>\n\n\n\n

    \n
  • Net profit rose 44% YoY<\/strong> to PKR 1.3 billion<\/strong><\/li>\n\n\n\n
  • EPS jumped to PKR 3.54\/share<\/strong> from PKR 2.50\/share<\/li>\n\n\n\n
  • Net margin surged to 27%<\/strong> from 19% in 1QCY24<\/li>\n<\/ul>\n\n\n\n

    This jump was primarily driven by a 21% increase in local sales<\/strong>, thanks to stronger domestic demand. However, export sales fell 18% YoY<\/strong>, largely due to the temporary closure of the Torkham border<\/strong>, which disrupted trade with Afghanistan, one of PABC\u2019s key markets.<\/p>\n\n\n\n

    Operational efficiency and capacity expansion<\/h2>\n\n\n\n

    The company produced 936 million cans in CY24<\/strong> at 89% capacity utilization<\/strong>, indicating healthy demand. With a production capacity of 1.2 billion cans per annum<\/strong>, PABC is operating near full efficiency. To prepare for future demand, the company is expanding capacity to 1.3 billion cans per year<\/strong>, a project expected to be completed in the next six months.<\/p>\n\n\n\n

    Looking ahead: targets and risks<\/h2>\n\n\n\n

    For CY25, PABC is projecting:<\/p>\n\n\n\n

      \n
    • Revenue of PKR 22 billion<\/strong><\/li>\n\n\n\n
    • Sales volume of 890 million cans<\/strong><\/li>\n<\/ul>\n\n\n\n

      However, the management cautioned that gross margins could remain under pressure<\/strong> in the current year. They also flagged several risks that could weigh on performance:<\/p>\n\n\n\n

        \n
      • Volatility in aluminium and commodity prices<\/strong><\/li>\n\n\n\n
      • Geopolitical tensions, especially border issues with Afghanistan<\/strong><\/li>\n\n\n\n
      • Removal of SEZ tax benefits<\/strong> (the company currently enjoys zero taxation until 2026)<\/li>\n\n\n\n
      • Expansion by regional competitors<\/strong><\/li>\n<\/ul>\n\n\n\n

        Long-term outlook remains positive<\/h2>\n\n\n\n

        Despite short-term challenges, PABC remains a well-managed company with strong fundamentals<\/strong>. Its position as the only aluminium can exporter in Pakistan<\/strong>, coupled with a growing domestic market and capacity expansion plans, bodes well for long-term investors.<\/p>\n\n\n\n

        But risks remain, especially around border dynamics and fiscal policy. Investors should keep a close eye on how these factors play out in the coming months.<\/p>\n\n\n\n

        Source:<\/strong> Taurus Securities Limited<\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":"

        Pakistan Aluminium Beverage Cans Limited (PABC), the country\u2019s first and only manufacturer and exporter of aluminium beverage cans, reported a resilient performance for CY24 and 1QCY25. Despite export headwinds and margin pressures, the company posted double-digit earnings growth, thanks to strong operational execution and growing local demand.<\/p>\n","protected":false},"author":9252,"featured_media":6876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,155],"tags":[256],"class_list":["post-9380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-fundamental-analysis","tag-pabc"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PABC-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PABC-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PABC-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PABC-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=9380"}],"version-history":[{"count":2,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9380\/revisions"}],"predecessor-version":[{"id":9411,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9380\/revisions\/9411"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6876"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=9380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}