Citi Pharma Limited (PSX: CPHL) has reported robust financial results for the fiscal year ended June 30, 2025, posting a profit after tax of Rs892.0 million, marking a 7% increase over the previous year’s Rs833.5 million. The earnings per share (EPS) rose to Rs3.90 compared to Rs3.65 in FY24, reflecting consistent growth despite macroeconomic pressures and rising operational costs. In line with this performance, the company declared a cash dividend of Rs3.5 per share, equivalent to 35%, rewarding shareholders for their continued confidence.
The company’s net sales for FY25 surged 6.0% year-on-year to Rs13.15 billion, driven by heightened demand across its pharmaceutical product portfolio. Meanwhile, the cost of sales increased at a slower pace of 2.9%, rising to Rs11.14 billion. This resulted in a gross profit of Rs2.02 billion, representing a 27.2% year-on-year increase and pushing the gross margin up to 15.3% from 12.8% in FY24. The growth in gross profitability highlights Citi Pharma’s operational efficiency in managing production costs while scaling revenues.
Administrative and general expenses rose by 8.8% to Rs222.1 million, while marketing and distribution costs climbed 8.4% to Rs191.2 million. Despite these incremental expenses, operating profit jumped 33.1% to Rs1.60 billion compared to Rs1.21 billion last year, underscoring strong control over operational expenditures and effective cost management strategies.
Financial charges increased by 9.9% to Rs329.7 million, reflecting higher financing costs, while other income fell sharply by 59.5% to Rs198.3 million. Other expenses rose marginally by 3.6% to Rs118.3 million. Consequently, profit before tax improved by 6% to Rs1.35 billion from Rs1.28 billion in FY24. The company’s tax expense for the year stood at Rs462.5 million, up 4.1% from the previous fiscal year, culminating in a net profit of Rs892.0 million and a stable net profit margin of 6.8%.
Citi Pharma’s management highlighted that the increase in profitability is largely attributable to efficient supply chain management, controlled production costs, and effective sales and marketing strategies that capitalized on rising demand for pharmaceutical products. The company’s continued focus on operational excellence and strategic market positioning has allowed it to navigate challenging market conditions and deliver tangible value to its shareholders.
Overall, FY25 represents a milestone year for Citi Pharma, reflecting growth across key financial metrics and an emphasis on shareholder returns through a substantial cash dividend. The company remains committed to sustaining profitability, optimizing operational performance, and expanding its market footprint in the competitive pharmaceutical landscape of Pakistan.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.