Topline Pakistan Research released a special report on the profitability of listed consumer sector companies in Pakistan, highlighting a 28% year-on-year (YoY) increase in profits for 2025. The pharmaceutical sector recorded the highest growth, followed by discretionary companies. Overall, consumer companies in the Staples, Pharmaceuticals, and Discretionary sectors listed on the Pakistan Stock Exchange (PSX) saw profits rise by 22% quarter-on-quarter (QoQ), while year-on-year profits remained flat in the fourth quarter of 2025. This resulted in total profits for 2025 reaching Rs244 billion, marking a 28% YoY increase.
Among the sectors, Pharmaceuticals experienced the highest growth, achieving Rs12 billion in the fourth quarter of 2025, reflecting a 56% YoY increase and a 40% QoQ rise. Discretionary companies followed with a 36% YoY increase and a 9% QoQ rise, while Staples saw a modest 1% YoY growth but a decline of 19% QoQ.
On a full-year basis, the profitability of Pharmaceuticals surged by 79% YoY to Rs36 billion, Discretionary companies enjoyed a 35% YoY increase to Rs98 billion, and Staples saw a 13% YoY rise to Rs110 billion. Net revenues for consumer companies grew by 14% YoY in 2025, driven by improved macroeconomic conditions and a stable exchange rate. Gross margins improved to 26.03% in 2025, compared to 24.48% in 2024. However, in the fourth quarter of 2025, gross margins dipped to 25.38%, down from 26.57% in the third quarter of 2025 and 26.29% in the fourth quarter of 2024, primarily due to a decline in Pakistan Tobacco (PAKT) ‘s margins.
**Staples:** Profits for consumer staple companies improved by 13% YoY in 2025, driven by higher gross margins of 30.16% (up from 29.41% in 2024), amidst stable demand and higher prices. Major players such as Pakistan Tobacco (PAKT), Nestlé Pakistan (NESTLE), and Service Industries (SRVI) reported increases in profitability of 7%, 16%, and 99%, respectively. Conversely, Colgate-Palmolive Pakistan (COLG), Rafhan Maize Products (RMPL), and Unilever Pakistan Foods (UPFL) experienced decreases in profitability by 11%, 13%, and 15% YoY, respectively.
**Pharmaceuticals:** Pharmaceutical companies saw profits rise by 79% YoY in 2025, primarily driven by increased gross margins as global API costs fell and non-essential drug prices were deregulated. The gross margins for these companies increased to 41.05% in 2025, up from 34.51% in 2024. All major pharmaceutical companies, including GlaxoSmithKline Pakistan (GLAXO), Abbott Laboratories Pakistan (ABOT), and Haleon Pakistan (HALEON), reported profit growth of 53%, 52%, and 39%, respectively.
**Discretionary:** The consumer discretionary sector achieved a 35% YoY rise in profits, supported by a 46% increase in the profit segment. This segment saw a significant turnaround, driven by higher gross profit margins and a 26% increase in net sales in 2025. The growth in sales was largely due to increased sales of cars and appliances, which benefited from improved macroeconomic conditions and lower interest rates. Gross margins in this segment improved to 17.32% in 2025, up from 14.96% in 2024, driven by a stable PKR/USD exchange rate and the introduction of new car models as economic activity picked up. All companies in the discretionary segment, except Millat Tractors (MTL), posted profits in 2025, with Ghandhara Automobiles (GAL) and Ghandhara Industries (GHNI) reporting extraordinary YoY profit growth of 291% and 176%, respectively.
