Searle company triples Q1 profit to Rs853.5m

October 24, 2025 (MLN): The Searle Company Limited (PSX: SEARLE) posted a profit after tax of Rs853.5m for the quarter ended September 30, 2025, marking a remarkable surge of 183.8% compared to Rs300.8m earned in the corresponding quarter of last year.

The pharmaceutical company's earnings per share (EPS) stood at Rs1.67, up 183.05% from Rs0.59 in the same period of FY25.

During the quarter, revenue from contracts with customers surged 28.3% year-on-year to Rs8.57bn, while the cost of sales increased at a slower pace of 4.45% to Rs3.78bn, resulting in a robust gross profit of Rs4.79bn a significant 56.48% increase compared to Rs3.06bn in the prior year.

However, distribution costs rose sharply by 71.01% to Rs2.61bn, compared to Rs1.53bn last year. Administrative expenses also increased 21.78% year-on-year to Rs414m, while other expenses surged 211.88% to Rs118.9m.

Other income remained relatively flat at Rs36.1m, showing marginal growth of just 0.03% compared to the same period last year. Despite higher operating expenses, the company's profit from operations grew 41.03% to Rs1.68bn from Rs1.19bn in Q1 FY25.

On the financial side, finance costs decreased significantly by 62.35% to Rs279m, down from Rs741.2m in the prior year, providing a substantial boost to profitability.

Profit before levies and income tax surged 211.74% to Rs1.40bn. After accounting for levies of Rs11.5m, profit before income tax reached Rs1.39bn, up 218.78% year-on-year.

The company recorded an income tax expense of Rs534.1m, compared to Rs134.5m in the same quarter last year, a 297.07% increase showing higher profitability and tax obligations.

As a result, Searle concluded the quarter with a net profit of Rs853.5m, with total comprehensive income also standing at Rs853.5m for the period.

The strong earnings growth was primarily driven by improved gross margins from enhanced revenue and controlled cost of sales, coupled with significantly lower finance costs, which more than offset the impact of higher distribution and administrative expenses during the quarter.

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