Citi Pharma's 1QFY26 profit holds steady

October 29, 2025 (MLN): Citi Pharma Limited (PSX: CPHL) reported a profit after income tax of Rs203.69m for the quarter ended September 30, 2025, up 1% from Rs201.5m in the corresponding quarter last year.

Earnings per share remained relatively flat at Rs0.89 compared to Rs0.88 in 1QFY25.

Net sales increased 5% year-on-year to Rs3.37bn from Rs3.22bn, demonstrating steady demand during the quarter. Cost of sales rose 2% to Rs2.85bn from Rs2.8bn.

Gross profit increased 21% to Rs518.97m against Rs428.51m in 1QFY25, with the gross margin improving to 15.4% from 13.3% in the prior year quarter, indicating enhanced operational efficiency and better cost management.

Administrative and general expenses increased 8% to Rs50.19m from Rs46.40m, while marketing and distribution expenses rose 19% to Rs48.43m from Rs40.70m. Other expenses (subtotal used for operating profit) increased 13% to Rs98.62m from Rs87.09m last year.

The company recorded an operating profit of Rs420.36m, up 23% from Rs341.42m in 1QFY25.

Financial charges increased 88% to Rs121.19m from Rs64.57m in the previous year. Other income declined 69% to Rs28.79m from Rs92.22m last year. Other expenses decreased 11% to Rs25.65m from Rs28.77m.

Profit before income tax decreased 11% to Rs302.28m from Rs340.29m in 1QFY25.

Taxation (income tax) declined 29% to Rs98.59m from Rs138.80m in the prior period.

The company concluded 1QFY26 with a net profit of Rs203.69m, delivering a net profit margin of 6% compared to 6.2% in 1QFY25. Despite improved gross margins and higher operating profit, the bottom-line growth was constrained by an 88% surge in financial charges and a 69% decline in other income, with the significantly lower tax charge helping maintain modest profit growth.

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