Abbott Laboratories (Pakistan) Limited (PSX: ABOT) reported an impressive rise in net profits for the third quarter ending September 30, 2024, achieving an after-tax profit of Rs1.81 billion (EPS: Rs18.48). This marks an astounding 27,019% increase from the Rs6.67 million (EPS: Rs0.07) reported in the same quarter of the previous year, attributed to substantial revenue growth and stable sales costs.
Revenue and Gross Profit Surge
Abbott Pakistan’s top line rose by 24.2% to Rs17.36 billion, up from Rs13.98 billion in the corresponding quarter last year, signaling strong sales performance. While the cost of sales increased by only 1.1%, the company’s gross profit soared 129.6% to Rs5.76 billion, compared to Rs2.5 billion in Q3 2023. This drove gross margins up to 33.2% from 18% last year.
Decline in Other Income
Despite the revenue increase, Abbott saw a 51.6% decline in other income, which dropped to Rs83 million from Rs171.53 million in Q3 2023. However, the decline in other income did not significantly impact the overall profitability, as strong core revenue more than compensated for this shortfall.
Expenses and Finance Costs
On the expense side, administrative costs rose 16.6% YoY to Rs300.48 million, while distribution and selling expenses saw a 16.4% increase, totaling Rs2.4 billion. Other operating expenses also increased dramatically, up 1300.3% to Rs281.01 million. Despite these increases, finance costs fell by 15.6% to Rs5.99 million, down from Rs7.09 million in Q3 2023.
Tax Expense and Net Profit
The company faced a significant increase in tax expenses, paying Rs1.04 billion, a 222.7% rise from the Rs323.1 million paid in the same period last year. However, the substantial revenue growth and controlled costs helped the company achieve a remarkable net profit of Rs1.81 billion.
Abbott’s Financial Snapshot for Q3 2024
| Metric | Q3 2024 (Rs ‘000) | Q3 2023 (Rs ‘000) | % Change |
|---|---|---|---|
| Sales | 17,364,546 | 13,981,908 | 24.19% |
| Cost of Sales | (11,603,412) | (11,472,137) | 1.14% |
| Gross Profit | 5,761,134 | 2,509,771 | 129.55% |
| Administration Expenses | (300,482) | (257,801) | 16.56% |
| Distribution Expenses | (2,404,851) | (2,066,577) | 16.37% |
| Other Income | 83,003 | 171,533 | -51.61% |
| Other Operating Expenses | (281,009) | (20,068) | 1300.28% |
| Finance Cost | (5,988) | (7,092) | -15.57% |
| Profit Before Tax | 2,851,807 | 329,766 | 764.80% |
| Tax Expense | (1,042,664) | (323,095) | 222.71% |
| Net Profit | 1,809,143 | 6,671 | 27019.52% |
| Earnings Per Share (EPS) | 18.48 | 0.07 | – |
This exceptional performance underscores Abbott Pakistan’s effective cost management, strategic revenue growth, and resilient market positioning.
