BFBIO Earnings Down 23% in 3QFY25
Staff Report
KARACHI: BF Biosciences (BFBIO) has recorded earnings down 23 percent year on year basis (YoY) in 3QFY25.
In its results announced on Tuesday, company said it posted earnings of Rs125mn (diluted EPS of Rs1.4) as compared to net earnings of Rs161(EPS of 1.8) during the same period last year, down by 23%YoY.
The company has attributed a decline in earning primarily to lower gross margin. During 2QFY25, the company’s topline surged by 41%YoY to Rs1.5bn, primarily driven by increase in volume due to newly launched products.
Unlike other pharma companies, BFBIO’s gross margin declined to 37%, down 15pptYoY from 52% in the same period last year.
Though we await detailed accounts, our understanding suggest that company might have sold higher toll manufactured products which have lower gross margins.
Having said that, higher depreciation which relates to Line II also negatively impacted gross margin.
The finance cost declined by 16% due to lower interest rate compared to same period last year.
During 9MFY25, the company’s earning remained flat despite 45%YoY growth in revenue mainly due to 2ppt decline in gross margin and 73% increase in operating expenses, compared to same period last year.
