Highnoon Laboratories sees 38% YoY surge in profit

March 26, 2025 (MLN): Highnoon Laboratories Limited (PSX: HINOON) witnessed a 38.4% year-on-year (YoY) increase in its profitability for the year ended December 31, 2024.

The company's profit after tax surged to Rs3.39 billion [EPS: Rs63.95] compared to Rs2.45bn [EPS: Rs46.2] in the same period last year (SPLY).

According to the financial results, revenue from contracts with customers increased 24.6% YoY to Rs24.63bn, up from Rs19.77bn in SPLY.

The cost of sales also saw a rise of 16.8% YoY, but due to a proportionally higher revenue increase, the gross profit improved by 33.2% YoY, reaching Rs12.52bn in 2024.

On the expense side, the company recorded a 22.3% YoY rise in distribution, selling, and promotional expenses, which stood at Rs6.05bn compared to Rs4.95bn in 2023.

Administrative expenses also grew 20.2% YoY to Rs930.22m, while research and development expenses declined 37% YoY to Rs9.47m.

Meanwhile, other operating expenses surged by 58.7% YoY, amounting to Rs532.55m.

Despite the increase in expenses, profit from operations recorded a 50.2% YoY growth, reaching Rs4.99bn compared to Rs3.33bn in 2023.

The company's other income experienced an impressive 138.4% YoY increase, standing at Rs441.51m versus Rs185.2m in SPLY.

However, finance costs saw a sharp rise of 164.8% YoY, amounting to Rs407.38m.

On the tax front, the company paid Rs1.62bn in taxes, an 81.7% YoY increase from Rs893.98m in 2023.

Overall, Highnoon Laboratories ended the year with a profit before tax of Rs5.01bn, reflecting a 50% YoY increase.

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