Karachi: AGP Limited (AGP) held a corporate briefing on their CY24 performance and future outlook, highlighting a 63% increase in profit after tax, amounting to Rs2.96 billion. This was accompanied by a 34% growth in topline revenue, reaching Rs25 billion. The company's success was driven by both price hikes and a significant 21% increase in sales volume.

The management attributed much of the revenue growth to the deregulation of non-essential drugs, with these effects particularly evident in the fourth quarter of CY24. Looking ahead, AGP anticipates further price adjustments based on the Consumer Price Index for essential drugs, while pricing for non-essential drugs will be determined by market conditions and competitiveness.

AGP's current non-essential product mix stands at 93% when viewed independently, and 62% on a consolidated level. The management expressed confidence in maintaining double-digit volumetric growth into CY25.

Within their key medicines portfolio, Azomax saw an 18% increase, surpassing Rs4 billion, Rigix grew by 33% to exceed Rs3 billion, and Osnate-D rose by 29% to cross the Rs2 billion mark. The company anticipates that Anafortan, Spasler, and Zatofen will soon surpass the Rs1 billion mark.

AGP is also concentrating on expanding its institutional client base. Institutional sales reached approximately Rs850 million in CY24, with expectations to grow this figure to Rs1.5 billion.

In light of ongoing tensions between Pakistan and India, AGP's management acknowledged the pharmaceutical industry's reliance on Indian imports, which stands at 20% by value. However, AGP's dependency is slightly lower at 14%. While a halt in trade could impact them by Rs100-150 million, AGP is prepared to switch to alternative suppliers to mitigate this.

AGP assured stakeholders that their current facilities are adequate to handle future supply demands, with a recurring capital expenditure of 7-8% of sales. The company anticipates an increase in the effective tax rate due to a shift to a normal tax regime, yet aims to maintain net margins between 15% and 20%, primarily through debt reduction and organic growth.