Abbott Pakistan’s quarterly earnings leap with revenue growth

October 25, 2024 (MLN): Abbot Laboratories (Pakistan) Limited (PSX: ABOT) reported its third-quarter earnings, wherein the profit after tax clocked in at Rs1.81 billion [EPS: Rs18.48].

This shows a massive improvement as in the same quarter last year, the company earned just  Rs6.67m [EPS: Rs0.07].

An analysis of the profit and loss statement reveals that robust revenue growth, coupled with minimal changes in selling costs, contributed to this exceptional performance.

ABOT's top line expanded 24.2% to Rs17.36bn as compared to Rs13.98bn in SPLY.

The cost of sales rose by a modest 1.1%, which, along with sales growth, boosted gross profit by 129.6% to Rs5.76bn in Q3 CY24.

The gross margins improved to 33.2% as compared to 18% in SPLY.

During the period under review, other income deflated by 51.6% to stand at Rs83m in Q3 CY24 as compared to Rs171.53m in SPLY.

On the expense side, the company's administration expenses rose 16.6% YoY to Rs300.48m, distribution and selling expenses increased 16.4% YoY to Rs2.4bn, while other operating expenses surged 1300.3% YoY to Rs281.01m.

The company’s finance cost deflated by 15.6% and stood at Rs5.99m as compared to Rs7.09m in SPLY.

On the tax front, the company paid a higher tax worth Rs1.04bn against the Rs323.1m paid in the corresponding period of last year, depicting an increase of 222.7%.

Amount in thousand except for EPS

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