Ferozsons Laboratories Limited. (FEROZ) held its corporate briefing today to discuss its FY24 & 1QFY25 financial results and future outlook.

The following are the key highlights, as reported by  AKD Research.

• The company posted a topline of PkR12.7bn in FY24 compared to PkR9.9bn in FY23, up 28%YoY, led by 20% growth in volume and 8% growth in prices. Pharma businesses account for 70% of the sales mix, whereas medical devices account for 30%.
• Meanwhile, earnings for the year totaled PkR400mn (EPS: PkR9.2), compared to PkR189mn (EPS: PkR4.35) in SPLY.
• Earnings for 1QFY25 were PkR141mn (EPS: PkR3.23) in FY24 compared to PkR181mn (EPS: PkR4.1) in SPLY, down 22% year over year. The decline was due to a 7% year-over-year revenue decline amidst a 40% year-over-year decrease in institutional sales for generic and medical devices.
• Essential drugs make up 65% of the sales mix, while the non-essential portfolio contributes 35%
• The current government receivables amount to approximately PkR2.3bn, broken down as follows: PkR1.0bn from Punjab and PkR500mn each from Sindh and KPK. Of these receivables, 90% are related to medical devices.
• The company has begun implementing price increases on selected products, which are being phased in. These adjustments are expected to improve margins in 2QFY25.
• The company has successfully installed 1MW of solar power plants, and another 1MW is in the final stages of installation.
• The scrip is not in our formal coverage.