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Karachi: The Searle Company Ltd. (SEARL) announced a significant turnaround in its financial performance for the fiscal year 2025, despite facing supply chain disruptions that resulted in a 4% decline in annual revenue. The company’s topline reached PkR24.8 billion, down from PkR25.8 billion the previous year, largely due to these disruptions which led to a volumetric decline.
Exports played a notable role, contributing 11% of total sales, with Searle currently exporting to 12 countries. The company has plans to broaden its export market, including potential entry into the United Arab Emirates.
In a reversal of fortune, Searle reported earnings of PkR434 million for FY25, a stark contrast to a loss of PkR3.3 billion in FY24. This profitability shift was attributed to reduced finance costs and a one-off impairment loss reversal following the divestment of one of its subsidiaries.
For the first quarter of FY26, the company saw its earnings surge by 2.8 times year-on-year to PkR854 million, driven by improved margins and higher volumetric sales. Management anticipates volumetric growth of 23% and value growth of 40% for FY26.
Searle’s gross margins improved to 50.8% in FY25 from 48.6% in FY24, reaching 56% in the first quarter of FY26. The company expects to maintain these margin levels throughout the fiscal year.
The company operates across six segments: Pharmaceuticals, Biopharmaceuticals, Nutraceuticals, Nutrition, Consumer, and Medical devices and disposables. Its sales mix remains evenly split between acute and chronic drugs.
Utilization rates for various forms of medicine in FY25 were reported as follows: liquids at 71%, tablets at 73%, capsules at 47%, powder at 83%, and injectables at 84%. The company’s top products, Extor, Nuberol, Hydryllin, and Peditral, generated significant revenue, amounting to approximately PkR4.5 billion, PkR4.0 billion, PkR3.0 billion, and PkR1.0 billion, respectively.
Searle is focusing on strengthening its biological and diabetes portfolio with the introduction of new products, including semaglutide, which is expected to launch soon. Management noted that this product offers better margins and pricing aligned with competitors.
Regarding the Afghan market, management indicated a potential revenue loss of PkR2 billion in FY26 if the market situation remains unchanged. Challenges due to API imports from India were also highlighted, but alternative sources have been identified to mitigate this risk.
The company is not currently under formal coverage by AKD Securities Limited.