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Karachi: Citi Pharma (CPHL) announced its financial results for the fourth quarter of fiscal year 2025, revealing steady earnings growth aligned with market expectations. The company recorded a net income of Rs214 million, reflecting a 41% year-on-year increase, though a slight 3% decrease from the previous quarter.
For the full fiscal year 2025, Citi Pharma’s earnings rose to Rs892 million, marking a 7% increase from the previous year. The earnings per share for the year stood at Rs3.90. Alongside the financial results, the company declared a final cash dividend of Rs3.5 per share, maintaining a payout ratio of approximately 90%.
Citi Pharma’s net sales for the fourth quarter reached Rs3 billion, a 6% year-on-year increase, despite a 9% quarterly decline. The annual sales figures hit Rs13.1 billion, reflecting a 6% year-on-year growth. The company’s gross margins improved significantly, reaching 18% in the fourth quarter, compared to 8% in the same period last year, and 15% for the full year, up from 13% in FY24. This improvement is attributed to a strategic shift from active pharmaceutical ingredients to higher-margin formulations.
The company’s distribution expenses in the fourth quarter decreased by 6% year-on-year, while showing a 99% increase from the previous quarter, totaling Rs72 million. Additionally, the finance costs decreased slightly by 1% both year-on-year and quarter-on-quarter. However, for the full year, finance costs increased by 10% due to a rise in short-term debt, which doubled from Rs1.4 billion in June 2024 to Rs2.8 billion in June 2025.
The effective tax rate in the fourth quarter stood at 34%, significantly higher than the 7% recorded in the same quarter last year, and slightly above the 25% of the previous quarter. For the full fiscal year, the tax rate was recorded at 34%, a slight decrease from 35% in the previous year.