The Searle Company Ltd. (SEARL) 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 PkR29.4n in FY24 compared to PkR26.2bn in FY23, up 14% YoY, due to an increase in prices led by the de-regulation of non-essential drugs and a one-off price increase for essential drugs.
- Export contributed to 11% of total sales in FY24. The company currently exports to 12 countries.
- The company recently obtained registration to sell its products in Uzbekistan and Azerbaijan and has also registered a facility in the GCC region. Management anticipates increased demand from these markets.
- The company’s loss for the year was PkR2.3bn (LPS: PkR4.46) in FY24, compared to an LAT of PkR0.6bn (LPS: PkR1.13) in FY23.
- Gross margins during FY24 increased to 47.4% due to reasons mentioned above, from 41.3% in FY23.
- The company currently operates in six segments: pharmaceuticals, Biopharmaceuticals, Nutraceuticals, Nutrition, Consumer, and Medical devices and disposables.
- The utilization rates for different forms of medicine during FY24 were 71% for liquids, 73% for tablets, 47% for capsules, 83% for powder, and 84% for injectables.
- The company recently launched ‘Adalimumab’ in the monoclonal antibody segment, with a margin of 65-80%. Additionally, the company faces no competition from other local manufacturers in the said segment. Moreover, the company has additional monoclonal antibody products in the pipeline.
- Moreover, the company is in the process of launching ‘Semaglutide’, with a plant already secured for production. The product is expected to be available in the market by next year, and it will be available in pen form.
- Non-essential drugs comprise 80% of the sales mix, while the essential portfolio contributes 20%.
- The scrip is not in our formal coverage.
Courtesy – AKD Research
