Lahore, Highnoon Laboratories Ltd (HINOON) held its analyst briefing today, revealing a consistent year-over-year earnings figure at PkR2.4 billion, with earnings per share standing at PkR45.4, despite a 25% increase in revenue. The company also declared a PkR30 per share cash dividend, up from PkR15.8 last year.

According to AKD Securities Limited, Highnoon attributed its revenue growth to higher sales volumes and increased product prices, particularly in medications for chronic diseases such as respiratory and cardiovascular conditions, and diabetes.

Further details from the briefing indicated a 36% increase in the cost of goods sold, driven by higher labor costs and increased utility expenses due to rising tariffs. Distribution and selling expenses rose by 24%, reflecting strategic investments to boost export market growth in regions like the Middle East, Malaysia, and Indonesia. Financial costs also surged by 153.4% to PkR136 million, primarily due to increased borrowings linked to rising working capital needs. Looking ahead, management is optimistic about profitability, especially with recent regulatory changes allowing for the deregulation of non-essential drug prices, which are expected to enhance industry margins.

Additionally, the company has recently acquired land for a new manufacturing unit at Quaid-e-Azam Business Park, which will come with a 10-year tax holiday. This expansion is aimed at producing therapeutic drugs and reducing the load on existing facilities, further positioning Highnoon for strategic growth amidst external challenges.