SEARL's earnings for the year clocked in at PkR434mn (EPS: PkR0.74) in FY25

The Searle Company Ltd. (SEARL) held its corporate briefing today to discuss its FY25 and 1QFY26 financial results and future outlook. According to AKD Research, the following are the key highlights:

The company posted a topline of PkR24.8bn in FY25, down 4% YoY from PkR25.8bn in FY24, mainly due to supply chain disruptions that led to a decline in volumes.
Exports contributed 11% of total sales in FY25. The company is currently exporting to 12 countries and plans to expand into new markets, including the UAE.
Company’s earnings for the year clocked in at PkR434mn (EPS: PkR0.74) in FY25, compared to a loss of PkR3.3bn (LPS: PkR5.66) in FY24. The turnaround in profitability was driven by lower finance costs and a one-off impairment loss reversal related to the divestment of one of its subsidiaries.
In 1QFY26, earnings increased 2.8x YoY to PkR854mn due to improved margins and higher volumetric sales. Management expects volumetric growth of 23% YoY and value growth of 40% YoY for FY26.
Gross margins improved to 50.8% in FY25 from 48.6% in FY24, reaching 56% in 1QFY26. Management expects these levels to sustain throughout FY26.
The company currently operates in six segments: Pharmaceuticals, Biopharmaceuticals, Nutraceuticals, Nutrition, Consumer, and Medical devices & disposables.
Sales mix between acute and chronic drugs remains evenly split.
The utilization rates for different forms of medicine during FY25 were: 71% for liquids, 73% for tablets, 47% for capsules, 83% for powder, and 84% for injectables.
Top products include Extor, Nuberol, Hydryllin, and Peditral, generating approximately PkR4.5bn, PkR4.0bn, PkR3.0bn, and PkR1.0bn in revenue, respectively.
The company is focusing on strengthening its biological and diabetes portfolio by launching new products, including semaglutide, which is expected soon. Management highlighted that it carries better margins with pricing aligned to competitors.
Regarding the Afghan market situation, management indicated a potential PkR2bn revenue loss in FY26 if the problem does not improve.
The company also faced challenges due to API imports from India; however, alternative sources have now been identified to mitigate this risk.
The scrip is not under our formal coverage.