Ferozsons Laboratories Limited recorded consolidated earning per share of PKR 17.86 in FY25, as compared to PKR 15.72 in FY24. The company recorded net sales of PKR 18.9 Bn, up 19% from PKR 15.9 Bn in FY24. During FY25, the company’s gross margin rose from 41% in FY24 to 42%.
Along with this, it saw its gross profit increase from PKR 6.5 Bn in FY24 to PKR 8.0 Bn in FY25. FEROZ posted profit after tax of PKR 922 Mn in FY25, compared to PKR 755 Mn in FY24. The company has lunched multiple new products including 2 relating to diabetes, 1 for hyper tension, 1 topical ointment in the anti burn segment among others.
Management highlighted that contrary to industry trends the company has seen its topline growth driven primarily by volumetric growth as opposed to industry wide growth being led by price. During FY25, the industry saw 16% growth due to price and 2% due to volume while FEROZ saw 16% volumetric growth and 8% price growth.
It was highlighted that the medical devices segment is facing issues due to poor cashflow driven by high inventory levels, receivables and consequent finance costs. During 1QFY26, the company saw a 4% drop in medical devices sales while pharmaceutical sales saw 21% with 11% contributed by price and 10% by volumes.
With regards to the Barret Hodgson transaction, it was apprised that during due diligence some points were left to be addressed by the seller which has caused delays. Any development in this regard will be declared at the exchange at the appropriate time.
Moving forward, management was of the view that margins would remain at these levels given stability in the currency market.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.