Karachi: Citi Pharma Limited, a key player in Pakistan's pharmaceutical sector, has reported a decline in its annual profits for the fiscal year ending June 30, 2026. According to the company's statement of financial position, its profit after income tax fell to Rs. 782,596,681 from Rs. 892,038,934 in the previous fiscal year, marking a significant decrease.

The company's total equity decreased to Rs. 10.83 billion from Rs. 10.87 billion as of June 30, 2025. This decline is attributed to a reduction in unappropriated profits, which fell from Rs. 1.81 billion to Rs. 1.77 billion over the same period. The issued, subscribed, and paid-up capital remained steady at Rs. 2.28 billion.

Non-current liabilities saw a notable increase, rising to Rs. 444.48 million from Rs. 266.63 million. This rise was driven by the introduction of long-term secured financing, which stood at Rs. 57.24 million, and an increase in deferred liabilities to Rs. 325.21 million from Rs. 201.76 million. Lease liabilities showed a decrease, recorded at Rs. 62.04 million compared to Rs. 64.86 million the previous year.

Current liabilities experienced a reduction, totaling Rs. 6.85 billion, down from Rs. 7.31 billion. This decrease was largely due to a reduction in trade and other payables, which fell to Rs. 3.38 billion from Rs. 3.86 billion. Short-term borrowings slightly increased to Rs. 2.87 billion from Rs. 2.86 billion, while the current portion of long-term liabilities saw a significant rise to Rs. 77.58 million from Rs. 15.80 million.

Citi Pharma's total assets for the fiscal year stood at Rs. 18.12 billion, a decrease from Rs. 18.44 billion in the previous year. Non-current assets increased to Rs. 9.52 billion from Rs. 8.97 billion, attributed to a rise in property, plant, and equipment to Rs. 9.21 billion from Rs. 8.69 billion. Current assets, however, decreased to Rs. 8.60 billion from Rs. 9.47 billion, driven by a reduction in cash and bank balances to Rs. 200.98 million from Rs. 603.55 million and a significant decrease in short-term investments to Rs. 86.68 million from Rs. 956.39 million.

The company's net sales increased to Rs. 14.00 billion from Rs. 13.15 billion, resulting in a gross profit of Rs. 2.45 billion, up from Rs. 2.02 billion. Despite this, operating profit rose to Rs. 1.93 billion from Rs. 1.60 billion, but profit before income taxes slightly decreased to Rs. 1.33 billion from Rs. 1.35 billion.

According to information available from the Pakistan Stock Exchange (PSX), Citi Pharma's earnings per share fell to Rs. 3.43 from Rs. 3.90. The company's financial charges increased to Rs. 387.92 million from Rs. 329.67 million, while other income declined to Rs. 91.93 million from Rs. 198.27 million. Other expenses also saw a rise, reaching Rs. 298.04 million from Rs. 118.34 million.

As Citi Pharma navigates challenges with rising liabilities and decreased profits, the company remains a significant entity in the market category of pharmaceuticals on the PSX.