Hifsa Raja

The gross profit of pharmaceutical firm Highnoon Laboratories Limited increased 25% to Rs5.9 billion in the first nine months of the calendar year 2022 (9MCY22) from Rs4.7 billion over the corresponding period of 2021. The operating profit of the company also increased 37% to Rs2.1 billion from Rs1.5 billion in the two comparable periods. The profit-before-taxation increased to Rs2.3 billion in 9MCY22 from Rs1.6 billion in 9MCY21. The profit-after-taxation jumped 41% to Rs1.7 billion in 9MCY22 from Rs1.2 billion in 9MCY21, reports WealthPK.

Earnings Growth Analysis

The company has maintained a double-digit growth rate in earnings in the past three years, indicating that it has been performing well in terms of profitability. The company registered a high growth rate of 46.31% in 2020 and a low of 15.69% in 2021. However, the overall trend has been positive, with an average earnings growth rate of around 27% over the past three years.

Investors should also consider other factors such as the company's financial health, market conditions, and industry trends before making investment decisions. It's also worth noting that the pharmaceutical industry can be subject to regulatory changes and competition, which can impact earnings growth.

Industry Comparison

Searle Company Limited, AGP Limited, GlaxoSmithKline Pakistan Limited, and Abbott Laboratories (Pakistan) Limited have all been regarded as rivals of Highnoon Laboratories Limited, which has a market capitalisation of Rs20.1 billion.

Profitability

The pharmaceutical industry in Pakistan is subject to regulatory changes, such as changes in drug pricing policies, which can impact the profitability of companies. The probability of Highnoon's success depends on its ability to compete effectively with other players in the industry, such as by introducing innovative products, maintaining high-quality standards and managing costs.

The company’s financial health also impacts the probability of its future success. The company's ability to generate profits, manage debt, and maintain liquidity are key factors in determining its ability to invest in research and development, expand its product portfolio, and compete in the market.

Company Profile

Highnoon Laboratories Limited is engaged in the manufacture, import, sale, and marketing of pharmaceutical and allied consumer products in Pakistan. The company's portfolio contains products for all major therapeutic areas, with a focus on alimentary tract and metabolism, antihistamines, anti-infectives, cardiovascular, endocrine, hematology, musculoskeletal, nervous system, parasitology, respiratory and urinary.

Credit: Independent News Pakistan-WealthPk