Ferozsons FY26 profit jumps 33% to Rs1bn, declares Rs5.5 dividend

September 28, 2026 (MLN): Ferozsons Laboratories Limited (PSX: FEROZ) recorded a 33% increase in its consolidated net profit for the year ended June 30, 2026, with profit after taxation climbing to Rs1.23bn from Rs921.71m in the corresponding period last year.

Showing this healthy bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs22.51 from Rs17.86 in FY25.

The Board of Directors has declared a final cash dividend of Rs5.50 per share (55%) for the year ended June 30, 2026.

The top-line performance was strong, with net revenue growing 27% year-on-year to Rs23.96bn from Rs18.86bn in the prior year.

Cost of sales rose at a slower pace of 22% to Rs13.25bn, allowing gross profit to expand by 34% to Rs10.70bn from Rs7.997bn reflecting meaningful margin improvement driven by better pricing, product mix, and cost efficiencies.

On the expenditure side, administrative expenses rose 30% to Rs1.17bn, and selling and distribution expenses increased 41% to Rs6.97bn the primary cost headwind of the year.

Other expenses rose 17% to Rs227.52m. Other income declined 19% to Rs207.51m from Rs254.94m. Allowance for credit loss eased marginally by 3% to Rs69.99m from Rs72.21m.

Despite the higher selling costs, the strong gross profit expansion drove profit from operations up 16% to Rs2.48bn from Rs2.13bn.

Below the operating line, finance cost declined sharply by 27% to Rs418.06m from Rs574.28m a meaningful tailwind that amplified the operating profit growth and pushed profit before income tax, final tax, and minimum tax differential up 32% to Rs2.06bn from Rs1.56bn.

Minimum tax differential rose 35% to Rs40.78m from Rs30.27m, keeping profit before income tax up 32% at Rs2.02bn from Rs1.53bn.

Income tax rose 31% to Rs788.89m from Rs603.48m rising in near-perfect proportion to pre-tax profit growth resulting in the 33% increase in profit after taxation for the full year.

Of the total profit, Rs978.58m was attributable to owners of the group, up 26% from Rs776.54m, while non-controlling interests contributed Rs249.15m up 72% from Rs145.17m last year.

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