Abbott Laboratories Pakistan Limited (ABOT) reported earnings per share of PKR 81.37 for CY25, compared to earnings per share of PKR 53.46 in FY24. Furthermore, in 1QCY26, the company reported earnings per share of PKR 26.57, compared to earnings per share of PKR 13.13 in the same period last year (SPLY). Sales revenue has doubled over the past five years, with the company delivering growth of 10.6% in 2025.
Management identified market risks, including currency devaluation and inflationary pressures impacting consumer purchasing power, along with climate related risks and geopolitical disruptions, as the key challenges facing the business. Growth initiatives are centered around market expansion, lifecycle management of mature brands through product extensions such as the recent launch of Brufen Duo.
The pharmaceutical industry continues to advocate for the benefits of deregulation, particularly in terms of improving product viability and availability. Management highlighted that a predictable pricing framework remains critical to achieving the industry’s export target of USD 10 billion by 2032. The company’s portfolio mix remains evenly split, with approximately 50% essential products and 50% non-essential products.
Affordability remains a key challenge across the industry. Within the Nutrition segment, elevated exchange rates for imported products necessitated price increases, which negatively impacted volumes. Management further noted that industry wide pharmaceutical volumes remained negative during 1Q2026. Management emphasized that the company is not solely dependent on pricing measures to drive growth.
The company is pursuing plant machinery upgrades to improve productivity while also engaging with suppliers to optimize raw material costs. While freight costs have increased due to the use of alternative shipping routes, management highlighted that maintaining product availability remains the key priority.
The company’s supply chain has remained intact, with no major product shortages reported to date. Exports are currently suspended due to border closures arising from national security concerns. While this has resulted in commercial losses.
Although third party data from IQVIA projects industry growth of 0.9%, management considers this estimate somewhat optimistic given the ongoing negative volume trends and continued pressure on consumer purchasing power.
Approximately 25% to 30% of active pharmaceutical ingredients are currently sourced locally. Institutional sales account for approximately 4% to 5% of total revenue. Management attributed the recent decline in this segment to the withdrawal of a government tender due to WHO directives and funding related issues.
Important Disclosures
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