Highnoon Laboratories reports strong Q1 earnings growth

April 29, 2024 (MLN): Highnoon Laboratories Limited (PSX: HINOON) experienced a rise of 22.0% YoY in its profitability during the first three months of 2024, with its profit after tax rising to Rs763.12 million [EPS: Rs14.4], compared to a profit of Rs625.51m [EPS: Rs11.81] in the same period last year (SPLY).

Going by the results, the company's revenue increased by 15.2% YoY to Rs5.61bn as compared to Rs4.87bn in SPLY.

The cost of sales also rose by 8.5% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 23.3% YoY to Rs2.73bn in Q1 2024.

The gross margins increased to 48.61% as compared to 45.41% in SPLY.

During the period under review, other income increased by 45.6% YoY to stand at Rs70.46m in Q1 2024 as compared to Rs48.39m in SPLY.

On the expense side, the company's administrative expenses rose 13.0% YoY to Rs226.7m, selling and distribution expenses rose 23.1% YoY to Rs1.39bn, and other operating expenses rose 23.1% YoY to Rs142.79m.

The company’s finance cost decreased by 19.8% YoY and stood at Rs0.68m as compared to Rs0.84m in SPLY.

On the tax front, the company paid a higher tax worth Rs278.94m against the Rs216.6m paid in the corresponding period of last year, depicting an increase of 28.8% YoY.

Amount in thousand except for EPS

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