Karachi: AGP Limited has reported robust growth and strategic achievements in its third quarterly financial report for 2024, highlighting significant advancements in revenue and market expansion amid a recovering economic environment.
The company announced a 34% increase in revenue, reaching PKR 13 billion for the nine months ending September 30, 2024, compared to the previous year. This growth was further accentuated in the third quarter with record sales of PKR 4.5 billion. According to information available from the Pakistan Stock Exchange (PSX), the pharmaceutical sector benefitted from deregulated drug prices, allowing companies like AGP to align their pricing strategies more closely with market dynamics, particularly for non-essential medicines.
AGP's domestic core brands saw a 27% increase in sales, while exports to Afghanistan surged by 59%. The Nutra segment also showed a significant uptick, with a 55% growth following the launch of three new products. Despite rising production and operational costs due to increased energy prices, AGP improved its gross margins through effective sales mix management and stringent cost control measures.
The financial results disclosed an increase in marketing, selling, and administrative expenses in line with business growth and inflationary pressures. Finance costs rose substantially, largely due to long-term financing for equity injections into its subsidiary, OBS Pakistan (Private) Limited, and an uptick in short-term borrowings to support increased working capital needs.
The standalone net profit for AGP stood at PKR 1.28 billion, with earnings per share of PKR 4.57, marking an increase of over 50% from the previous year. Subsidiaries OBS AGP (Private) Limited and OBS PK also performed well, with topline figures of PKR 4.1 billion and PKR 2.4 billion, respectively. However, high finance costs impacted their bottom-line profitability.
Consolidated figures for the company reached new heights with a topline of PKR 17.7 billion and a gross profit of PKR 9.8 billion. The consolidated net profit attributable to AGP was PKR 1.6 billion, resulting in earnings per share of PKR 5.26.
AGP was recognized for its excellence at the Best Corporate and Sustainability Reports (BCSR) Awards 2023 and the 7th Pharma Export Summit and Awards 2024, reflecting its commitment to governance, sustainability, and export growth.
Looking ahead, AGP is optimistic about Pakistan's economic prospects, expecting further reductions in inflation and policy rates. The company plans to leverage its product portfolio and group synergies to strengthen its domestic presence and expand internationally. Strategic investments are set to enhance manufacturing capabilities and adapt swiftly to market changes, ensuring AGP maintains a competitive edge.
AGP's dedication to quality healthcare and operational excellence remains key to its future strategy, as acknowledged by the company's leadership in expressing gratitude to stakeholders and employees for their continued support and commitment to the company's vision.