Karachi: Financial performance of Hoechst Pakistan Limited, previously known as Sanofi-Aventis Pakistan Limited, has shown a significant uptick in the third quarter of 2024, according to the latest earnings report released on October 23, 2024. The Board of Directors met at the company's head office and through a video link to approve these results.
The company reported a notable increase in revenue from contracts with customers, reaching Rs. 20.52 billion in the nine months up to September 30, 2024, up from Rs. 15.88 billion in the corresponding period last year. This represents a substantial rise in net revenue by approximately Rs. 4.64 billion. According to information available from the Pakistan Stock Exchange (PSX), this growth has been underpinned by a stringent control on costs and an enhanced operational efficiency.
Hoechst Pakistan's gross profit for the nine months ended September 30, 2024, stood at Rs. 6.29 billion, which marks an increase from Rs. 4.33 billion recorded during the same period in 2023. The company successfully reduced its distribution and marketing costs, which totaled Rs. 2.51 billion, compared to Rs. 1.95 billion last year, despite the challenging market conditions.
Administrative expenses were slightly up from Rs. 686.17 million to Rs. 788.36 million, reflecting a controlled increase in line with inflationary pressures. Operating profit surged to Rs. 2.58 billion in the nine months of 2024 from Rs. 429.90 million in 2023, demonstrating a robust improvement in operational efficiency.
The company did not declare any dividends, bonus shares, right shares, or other entitlements, indicating a strategic reinvestment of profits into company operations and future growth initiatives.
Profit before income tax for the nine-month period was reported at Rs. 2.15 billion, a stark contrast to Rs. 56.45 million in the previous year. After accounting for taxes, the net profit stood at Rs. 1.20 billion, reversing a loss of Rs. 52.83 million from last year, showcasing a strong recovery and positive financial health.
Earnings per share also reflected this positive trend, with basic and diluted earnings per share standing at Rs. 124.93, a significant turnaround from a loss per share of Rs. 5.48 in the previous year.
The complete financial statements and further details about the company's performance have been made available on Hoechst Pakistan's official website and through the PUCARS filing system. The company's strategic focus on cost management and market expansion has evidently paid dividends in terms of financial performance this year.