HPL reported a net profit of PKR 1.86 billion (EPS: PKR 192.56) in CY24, a significant increase from PKR 360.81 million (EPS: PKR 37.41) in the previous year.
The company declared a total dividend of PKR 135 per share for CY24, representing 70% of total profitability. HPL holds a 2.7% market share in Pakistan’s pharmaceutical industry, ranking 13th in the market. According to management, the company benefited from favorable macroeconomic developments in CY24, including a reduction in interest rates, stability in exchange rates, price hardship approvals for 146 products (including two from HPL), and the deregulation of non-essential products, which helped absorb production costs.
The portfolio mix comprises Antibiotics (34%), Diabetes (19%), Cardiology (17%), Others (17%), and Pain & Allergy (13%). The Diabetes category grew by 26% to PKR 4.95 billion, CHC products increased by 24% to PKR 4.6 billion, trade business increased by 31% to PKR 5.65 billion, and Cardio Care rose 17% to PKR 2.91 billion. Antibiotics recorded an 11% increase to PKR 1.89 billion, limited by a relatively smaller portfolio within the PKR 180 billion antibiotic market. Exports registered a 65% growth to PKR 1.17 billion. Vaccine sales rose by 37% to PKR 589 million, while Hospicare revenue increased by 25% to PKR 4.82 billion. Total sales increased by 25% to PKR 26.75 billion in CY24.
This sales growth was driven by consistent performance, market expansion, and strategic initiatives. The company completed the acquisition of four products with a cumulative turnover of PKR 2.4 billion in January 2025. Cost control efforts reduced the cost-to-sales ratio by 5%, while improved working capital management enabled net financing cost savings of PKR 41 million. The company remained cash-positive during 1HCY24.
However, due to Red Sea disruptions in 2HCY24, inventory levels were raised, resulting in short-term debt of PKR 1.2 billion. HPL fulfills 20% of its energy requirements from solar, with solar energy output reaching 1,324 MWh in CY25. In CY24, the board approved the establishment of a wholly owned subsidiary to operate the wellness and nutraceuticals business, along with a wholly owned foreign subsidiary in the UAE to support export operations, subject to regulatory approvals. Product development and planned launches are currently underway.
The company expects no material impact of oil prices on API procurement, citing a shelf life of 2–3 years. However, it recorded a favorable cost effect on two to three APIs due to recent oil price movements. Plans are in place to launch CHC products under Opella, a wholly owned subsidiary of Sanofi, after market and pricing assessments. The share of imported products in the portfolio stands at 43–46%, comprising essential items.
Going forward, HPL intends to launch products in the wellness segment during this year and the next. The company has no plans for a stock split or issuance of bonus shares. CPI-linked price adjustments for essential drugs are expected in the range of 4–4.5%, while overall CPI is projected between 6.5–7%. Pricing in non-essential categories has become more competitive.
Management expects the exchange rate to remain stable over the next two quarters. The company expects that as export volumes grow, it may face tariff-related challenges, even though such challenges do not currently exist in Pakistan’s pharmaceutical sector.
Important Disclosures
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