Karachi: Abbot has released its un-audited condensed interim financial statements for the nine months ending September 30, 2024, showcasing a significant 20% increase in overall sales compared to the same period last year. According to information available from the Pakistan Stock Exchange (PSX), the pharmaceutical segment saw a 22% growth, driven by the sustained performance of established brands, while the diagnostics segment grew by 25% due to new customer acquisitions. Additionally, nutritional sales rose by 13%, primarily due to strategic price adjustments.

The company reported that its gross profit margin improved by 800 basis points to 28% from the same period last year. This improvement was attributed to a combination of price adjustments and efficiency measures across the company. The pharmaceutical segment's gross margin increased to 29% from 21%, and the nutritional segment's gross margin rose to 35% from 22%.

In terms of expenses, selling and distribution costs increased by 15% in line with sales growth and inflation, while administrative expenses rose by 11% due to inflationary pressures and salary increments. Consequently, the net profit as a percentage of sales improved significantly to 8%, up from a net loss of 2% in the same period last year.

For the third quarter of 2024, Abbot reported a 24% increase in sales over the same period last year, led by a 32% increase in pharmaceutical sales and a 12% rise in nutritional sales, both bolstered by price adjustments. The company's gross profit margin for the quarter improved dramatically by 1500 basis points to 33% from the same period last year.

Operating expenses for the quarter were up by 16% due to inflation and sales growth. Other charges increased by PKR 261 million over the same period last year, reflecting higher statutory charges aligned with improved profitability. As a result, the profit after tax for the quarter surged by Rs. 1,802.5 million compared to the same period last year.

Looking forward, Abbot remains cautiously optimistic about the future. The recent stabilization of macro-economic indicators has relieved some pressure on the pharmaceutical sector, which has been grappling with economic uncertainties. The company remains committed to expanding and diversifying its product offerings and is focused on innovation, efficiency, and cost containment to enhance its market position.