Haleon Pakistan profit surges 33% in 2QCY25
Haleon Pakistan Limited reported a 33% year-on-year jump in second-quarter earnings per share to Rs13.9, supported by higher sales and stronger margins, while also announcing an interim dividend of Rs10 per share.
STAFF REPORTER: Haleon Pakistan Limited (HALEON) posted a significant rise in profitability for the second quarter of calendar year 2025, with earnings per share (EPS) increasing to Rs13.9 from Rs10.5 in the same period last year, marking a growth of 33 percent. The company’s board also approved an interim cash dividend of Rs10 per share, reflecting strong operational performance and improved cash flows.
The earnings surge was primarily driven by robust revenue growth and improved gross margins. The company’s topline grew 18 percent year-on-year, reaching Rs11.6 billion compared to Rs9.8 billion in the second quarter of 2024. The growth in sales was mainly attributable to higher product prices, particularly in consumer healthcare categories. Haleon, known for leading brands such as Cac-1000, Sensodyne, and Panadol, benefited from strong seasonal demand as well as pricing adjustments to offset cost pressures.
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Gross margins improved sharply to 40 percent in the quarter, compared to 34 percent in the same period last year. The margin expansion was linked to a combination of price increases and easing input costs, particularly in imported raw materials. Industry analysts noted that the six percentage-point improvement demonstrates effective cost management in a period of currency volatility and shifting global commodity prices.
Despite the robust operating performance, the company reported a decline in other income, which fell 15 percent year-on-year to Rs210 million. This was attributed to lower returns from interest income amid a reduction in benchmark interest rates during the period. Nevertheless, Haleon’s core operations more than offset the decline, keeping overall profitability on an upward trajectory.
On a sequential basis, Haleon’s results also showed strong momentum. Compared to the previous quarter, EPS rose 20 percent, reflecting continued strength in sales and margin expansion. Quarterly revenue grew by 16 percent, reaching Rs11.6 billion versus Rs10 billion in the first quarter of 2025. The increase was led by higher seasonal sales of Cac-1000 during the summer, highlighting the company’s strong brand positioning in nutritional supplements. Gross margins also expanded by six percentage points on a quarter-on-quarter basis, supported by lower raw material costs.
The company’s latest results underscore the resilience of Pakistan’s consumer healthcare sector, which has shown sustained growth despite inflationary pressures and a challenging economic environment. Industry observers point out that Haleon’s performance aligns with a broader trend in the pharmaceutical and consumer health markets, where companies with diversified brand portfolios and pricing power have managed to preserve profitability.
For context, Haleon Pakistan was spun off as a separate entity following the global demerger of GSK Consumer Healthcare in 2022. Since then, the company has been expanding its footprint in Pakistan, capitalizing on demand for over-the-counter medicines, oral care, and dietary supplements. Its ability to deliver consistent topline growth amid rising costs has been a recurring theme in its quarterly results.
Market participants are likely to view the Rs10 per share interim dividend as a sign of management’s confidence in cash flow stability. Last year, Haleon paid a lower interim dividend, making the latest payout a stronger return to shareholders in light of improved earnings visibility. Analysts suggest the move could attract greater investor interest in the stock, particularly given the resilience of defensive sectors like healthcare.
Looking ahead, Haleon’s earnings outlook will hinge on continued pricing strategies, stability in raw material imports, and consumer demand trends. With inflation showing signs of moderation and the central bank expected to maintain a more accommodative monetary stance, companies like Haleon may see further support in operating margins. However, volatility in exchange rates and global commodity prices remain key risks to watch.
Haleon Pakistan Limited’s second-quarter performance highlights the strength of its business model, with double-digit growth in both revenue and profit, margin expansion, and a shareholder-friendly dividend policy. As one of the leading players in the consumer healthcare market, the company is expected to maintain momentum in the second half of 2025, supported by strong brand demand and easing cost pressures.
