Karachi: The Searle Company Limited (SEARL) has reported a significant increase in its loss per share (LPS) for the fourth quarter of fiscal year 2026, according to its latest financial results. The company posted a consolidated owners' loss of Rs1.8 billion, translating to an LPS of Rs3.14, marking a 71% increase compared to the same period last year. Despite this, the company's earnings per share (EPS) for the full fiscal year stood at Rs0.75.
According to JS Global, Searle's financial performance was affected by a strategic move to transfer its biological portfolio brands to a wholly-owned subsidiary, generating a one-off gain of approximately Rs3.7 billion at the unconsolidated level. However, this gain was neutralized at the group level during consolidation. Future operations of the biological segment will be integrated into the consolidated business.
The company's net sales for the fourth quarter reached Rs7.4 billion, representing a 12% year-on-year increase, although a 24% decline was observed quarter-on-quarter, attributed to seasonal factors. Overall, fiscal year 2026 sales rose to Rs36.8 billion, reflecting a 29% year-on-year growth. Gross margins for the fourth quarter were recorded at 47%, a decrease from the previous year's 50%, but the full-year gross margin improved to 52%.
Selling and distribution costs saw a 3% year-on-year decline in the fourth quarter, dropping to Rs2.5 billion, but increased by 29% over the fiscal year to Rs11.2 billion due to higher fuel expenses. Administrative costs showed a significant rise to Rs532 million in the fourth quarter, increasing 4.8 times compared to the previous year.
Finance costs decreased by 21% year-on-year to Rs266 million in the fourth quarter, with the full-year finance cost down 48% to Rs1.1 billion. Tax expenses surged to Rs3.6 billion for the fiscal year, with an effective tax rate of 87%, up from Rs724 million and a 47% tax rate in the previous year.
In a surprise move, Searle declared a final cash dividend of Rs1.0 per share for the fourth quarter, marking its first payout in five years. The company has maintained its BUY stance, with current trading at an estimated fiscal year 2027 price-to-earnings ratio of 10.6 times.