Karachi October 28 2023: Abbot Pakistan reported loss of PKR 792 million for the first nine months of current calender year due to significant devaluation of Pakistan Rupee.
Sales for the period increased by 12% over the same period last year. Pharmaceutical sales increased by 18% driven by sustained performance of established brands, while Nutritional sales decreased by 7% mainly on account of lower volumes following restrained demand due to inflationary pressures. Diagnostics segment registered a growth of 20% following price revisions taken during Q3-2023.
"The Company continues to face challenges of inflation and Rupee devaluation. The macroeconomic environment continues to pose significant external challenges which must be proactively addressed to ensure sustainable future of the pharmaceutical industry," says Company Chief Executive Officer Syed Anis Ahmed.
"We hope that the Drug Regulatory Authority of Pakistan will play its due role in this unprecedented situation through conducting necessary pricing reviews and ensuring timely resolution of pending hardship cases. As a long-term measure, the Authority may consider introducing automatic mechanism and policy to offset the impact of devaluation. Notwithstanding, your Company remains dedicated to making all efforts to mitigate adverse impacts through productivity and cost containment initiatives," he added.
Gross profit margin of the Company over this period was 20% vs 33% during the same period last year. It remained under pressure due to significant devaluation of Pakistani Rupee in Q1 2023 and increase in product costs.
Gross margin for the pharmaceutical segment declined to 21% from 32%, whereas the gross margin for Nutritional segment also declined to 22% from 40%.
Operating expenses increased by 14% on account of inflation. Other charges increased by 18% mainly on account of exchange losses due to devaluation of Pakistani Rupee during Q1-2023.
Tax charge for the period was PKR 1,762.4 million primarily on account of minimum tax regime and prior year super tax levy at the rate of 10% implemented through Finance Act 2023. Net loss for the period was PKR 792.7 million due to the reasons mentioned above.