Highnoon Laboratories' 9MCY25 profit inches up 12%

October 30, 2025 (MLN):  Highnoon Laboratories Limited (PSX: HINOON) reported a profit after tax for the period of Rs2.68bn for the nine months ended September 30, 2025, up 12% from Rs2.4bn in the corresponding period last year.

Earnings per share increased 12% to Rs50.59 compared to Rs45.22 in 9MCY24.

Revenue from contracts with customers rose 11% year-on-year to Rs20.3bn from Rs18.32bn, demonstrating solid demand during the period. Cost of revenue declined marginally by 1% to Rs9.11bn from Rs9.16bn.

Gross profit increased 22% to Rs11.20bn against Rs9.17bn in 9MCY24, with the gross margin improving significantly to 55.2% from 50.0% in the prior year period, indicating enhanced operational efficiency and better cost management.

Distribution, selling and promotional expenses rose 20% to Rs5.75bn from Rs4.80bn, while administrative and general expenses increased 47% to Rs1.2bn from Rs817.8m. Other operating expenses declined 28% to Rs232m from Rs320m last year.

The company recorded a profit from operations of Rs4.02bn, up 25% from Rs3.22bn in 9MCY24.

Other income declined 3% to Rs324m from Rs332.8m in the previous year. Finance costs decreased 43% to Rs101m from Rs177.4m, providing significant relief to the bottom line.

Profit before income tax and final tax stood at Rs4.24bn, up 25% from Rs3.38bn in 9MCY24. Final taxes stood at Rs10.18m in 9MCY24, which were absent in the current period.

Profit before income tax increased 26% to Rs4.24bn from Rs3.37bn in 9MCY24.

Taxation increased 60% to Rs1.56bn from Rs974.2m in the prior period.

The company concluded 9MCY25 with a net profit of Rs2.68bn, delivering a net profit margin of 13.2% compared to 13.1% in 9MCY24.

The profit growth was driven by strong revenue expansion, exceptional gross margin improvement of 520 basis points to 55.2%, and substantially lower finance costs (down 43%), which more than offset the 47% increase in administrative expenses and 60% higher taxation, demonstrating the company's robust operational performance in Pakistan's pharmaceutical sector.

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