HPL earnings nearly double in 9MFY25

October 24, 2025 (MLN): Hoechst Pakistan Limited (PSX: HPL) has reported a consolidated profit after tax of Rs2.21 billion for the nine months ended September 30, 2025, showing a robust increase of 83.5% compared to Rs1.20bn in the same period last year.

Total revenue from contracts with customers surged 19.8% to Rs24.58bn during 9MFY25, compared to Rs20.52bn in the corresponding period of FY24.

Gross profit witnessed impressive growth of 37.8% to Rs8.67bn, as cost of sales rose at a slower pace of 11.8% to Rs15.91bn, showing improved operational efficiency and better cost management.

Operating profit jumped 53.2% to Rs3.95bn, driven by strong top-line growth despite higher operating expenses. Distribution and marketing costs increased 33.9% to Rs3.35bn, while administrative expenses rose modestly by 2.8% to Rs810.25m.

A significant positive development was the 82.2% decline in allowance for expected credit loss, which dropped to Rs18.06m from Rs101.20m last year, indicating substantially improved asset quality and better credit risk management.

Other expenses increased 45.3% to Rs741.06m, while other income grew 4.2% to Rs199.15m. Overall, total other expenses/income rose 27.2% to Rs4.72bn.

Finance costs decreased 7.8% to Rs76.44m, compared to Rs82.94m in 9MFY24, providing relief amid the evolving interest rate environment.

Profit before income tax surged 80.2% to Rs3.87bn, up from Rs2.15bn in the same period last year.

However, total income tax expense increased 76.0% to Rs1.66bn, driven primarily by a 103.7% rise in current tax to Rs1.95bn.

Notably, deferred tax shifted dramatically from an expense of Rs12.90m to an income of Rs287.56m, while minimum tax differential improved significantly with a 99.9% reduction.

Despite higher taxation, profit after tax stood at Rs2.21bn, with earnings per share (EPS) recorded at Rs229.21, up substantially from Rs124.93 in the same period last year, representing an 83.5% year-on-year growth.

The strong performance reflects Hoechst Pakistan's successful business expansion, improved operational efficiency, and better asset quality management during the nine-month period.

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