Ferozsons Laboratories Reports 28% Revenue Increase in FY24, Faces Decline in 1QFY25 Earnings

Lahore: Ferozsons Laboratories Limited (FEROZ) experienced a substantial 28% increase in revenue for the fiscal year 2024, reaching PkR12.7 billion compared to PkR9.9 billion in the previous fiscal year. This growth was driven by a 20% rise in volume and an 8% increase in prices. However, the company saw a decline in earnings for the first quarter of FY25, attributed to a significant drop in institutional sales.

According to AKD Securities Limited, the pharmaceutical segment accounted for 70% of the sales mix, while medical devices made up the remaining 30%. The company’s earnings for FY24 amounted to PkR400 million, with an earnings per share (EPS) of PkR9.2, up from PkR189 million (EPS: PkR4.35) in the same period last year. In contrast, the earnings for the first quarter of FY25 fell by 22% year-over-year to PkR141 million (EPS: PkR3.23), down from PkR181 million (EPS: PkR4.1) during the same period last year.

The decline in first-quarter earnings was primarily due to a 7% drop in revenue, exacerbated by a 40% decrease in institutional sales for generic and medical devices. Essential drugs constitute 65% of the company’s sales mix, with the non-essential portfolio contributing 35%. The company’s current government receivables are estimated at PkR2.3 billion, mainly related to medical devices, with significant amounts owed by Punjab, Sindh, and KPK.

To address margin pressures, Ferozsons has begun implementing phased price increases on selected products, with expectations of improved margins in the second quarter of FY25. In addition, the company has installed a 1MW solar power plant, with another 1MW installation near completion. The company’s stock is not covered formally by analysts.

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