CPHL FY26 profit softens 11%

October 05, 2026 (MLN): Citi Pharma Limited (PSX: CPHL) reported an 11% decline in its consolidated net profit for the fiscal year ended June 30, 2026, recording Rs790.33m compared to Rs892.04m in the preceding year.

Reflecting this bottom-line compression, basic and diluted earnings per share (EPS) for the year fell to Rs3.46, down from Rs3.90 in FY25.

The primary factors weighing on final earnings were rising marketing overheads, elevated financial charges, and higher operating expenses, which offset a 7% top-line revenue expansion and strong core gross profit growth.

Consolidated net sales grew by 7% year-on-year to Rs14.08bn, up from Rs13.15bn in FY25. With cost of sales expanding by 4% to Rs11.60bn, gross profit jumped 23% to Rs2.47bn compared to Rs2.02bn in the prior year.

On the operational front, overheads expanded to support sales outreach and distribution scaling.

Administrative and general expenses rose 15% to Rs254.51m, while marketing and distribution expenses surged 45% to Rs278.04m. Consequently, operating profit grew 21% to Rs1.94bn.

Below the operating line, CPHL faced significant financial headwinds. Financial charges expanded 18% to Rs388.77m, while other operating expenses surged 153% to Rs299.03m.

Despite a 138% boost in "other income" (Rs91.93m up from Rs38.62m), profit before taxation edged down slightly to Rs1.34bn.

The company absorbed a higher corporate taxation charge of Rs554.18m for the year (up 20% from Rs462.47m in FY25). Backed by core gross margin gains but constrained by marketing outlays, financial charges, and tax inflation, Citi Pharma Limited closed the fiscal year with a net profit of Rs790.33m.

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