IBL HealthCare Ltd. (IBLHL) held its corporate briefing today to discuss its FY24 financial results and future outlook.

The following are the key highlights:

• The company posted a topline of PkR3.6bn in FY24 compared to PkR4.0bn in FY23, down 11% YoY, due to supply chain constraints amid the plant shutdown of Mead Johnson in Thailand.
• Moreover, company’s profit for the year clocked in at PkR7.6mn (EPS: PkR0.09) in FY24 compared to PkR309mn (EPS: PkR3.61) in FY23, due to discounts offered amid limited shelf life of food products.
• Due to the aforementioned reasons, gross margins during FY24 shrank to 26.4% from 33.2% in FY23. However, management stated that gross margins recovered to 31% in 1QFY25.
• The management is prioritizing locally manufactured products to achieve better gross margins.
• The company currently operates in five segments: nutrition, Health and wellness, Ophthalmic, Medical Disposables, and Pharmaceuticals.
• Management stated that sales for FY24 were lower due to inflationary pressures, which led to a decline in sales within the Nutrition and Health & Wellness segment.
• Management is currently focused on ‘Prep-up’ and ‘Enfragrow’ and is forecasting a 50% growth in this portfolio. Moreover, the company expects a 100% growth in the ‘Canderal Stevia’ portfolio.
• The company is launching new medical equipment, including Surgical Tapes and blades. Management anticipates launching these products during the current year.
• Moreover, new pharmaceutical and nutraceutical launches are also in progress.
• The script is not in our formal coverage.

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