MACTER reported a net profit of PKR 392.00 million (EPS: PKR 8.56) in 1HFY25, marking a 101% increase from PKR 195.13 million (EPS: PKR 4.26) in the previous year. In 1HFY25, sales witnessed a growth of 37%, reaching PKR 4.92 billion.
Management reported that all revenue categories, including prescription, institution and export, registered double-digit growth during the period. About 20% of growth is attributed to price increase and 80% is volumetric growth, supported by new product launches and optimizing portfolio by lowering sales& marketing costs. MACTER witnessed 51% YoY growth in gross profits standing at PKR 2.20 billion due to better sales mix, better contribution from prescription and export business. Gross margins increased to 45% in 1HFY25 from 41% during the SPLY.
Operating profit growth of 142% YoY was attributed to higher sales, increase in gross margins, efficiency enhancement and cost optimization measures. Finance cost decreased by 10% YoY to PKR 23.42 million in 1HFY25. The current ratio was reported at 1.72 in 1HFY25 compared to 1.90 in the SPLY.
Return on Capital Employed was reported at 25.18% compared to 18.46% in the last year. Management reported that MACTER has cost advantage in seglutide due to dosage flexibility. According to IQVIA 4Q MAT 2024, MACTER witnessed a growth of 34.8% compared to 19.9% growth of MNCs, 22% growth of national pharma companies and 21.5% of Pharma industries in Pakistan.
Management reported that local companies’ performance is better than MNCs due to exchange rate fluctuations, limited range of products and their shift towards to specialized products. Moreover, new product launches help local companies support their margins. MACTER reports ex-factory price in its financials while IQVIA reports trade price, creating a difference in sales and market share figures.
The Musarrat Misbah subsidiary has shifted towards locally manufactured products and expected to be profitable in future. Going forward, management aims to focus on R&D while increasing footprint in global market. Management expect profitability to increase in future.
Management expects the deregulation of non-essentials to help pharma companies thrive, improving margins. The de-regulation of nonessentials is expected to increase their portfolio share from 30-35%.
Management does not anticipate semaglutide market to reach the potential of PKR 100 billion in next 1-2 years. Company expects exports of semaglutide in multiple countries in 2025. Revenue contribution from new products will be PKR 500-600 million this year.
Important Disclosures
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