Pakistan Aluminium Beverage Cans limited reported earnings per share of PKR 16.9 in FY24 against an earnings per share of PKR 13.9 in FY23.Furthermore, in 1QCY25 the company reported earnings per share of PKR 3.5 against PKR 2.5 in SPLY. The company has recently completed a debottlenecking initiative, resulting in an increase in annual manufacturing capacity from 1,200 million to 1,300 million cans.
This expansion project is expected to become operational within the next three to six months. The company is currently operating at 89% capacity utilization. Full capacity is not being utilized due to the seasonal nature of demand, which typically slows from October to January each year. Over the past two years, demand has been adversely affected by high inflation and the conflict in Gaza.
However, management anticipates a recovery as macroeconomic conditions stabilize. Additionally, a positive shift is being observed as more local beverage brands—seeking alternatives to multinational options like Coca-Cola and Pepsi—are introducing canned products. The company is actively supporting these new market entrants. Management noted that fluctuations in aluminium prices are generally passed on to customers.
However, a few customers with long-term contracts have pricing structures that account for inflationary adjustments or other agreed terms. Key risks highlighted by management include Potential closure of the Afghan border which could impact trade with Central Asia, Exchange rate volatility and fluctuations in aluminium prices, Increased market competition and shifts within the industry and Ongoing geopolitical conflicts including those in Ukraine and Gaza which may continue to disrupt local trade dynamics. Going Forward in FY25, management projects revenue of approximately PKR 22 billion, driven by a forecasted sales volume of around 890 million cans.
Important Disclosures
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