HALEON Records 108% Earnings Growth in 1QCY25
Staff Report
Karachi: Haleon Pakistan Limited (HALEON) announced 1QCY25 EPS of Rs11.5 versus Rs5.5 during the same period last year, reflecting a strong growth of 108%YoY.
The surge in earnings was primarily driven by robust topline growth of 26%YoY and an improvement in gross margins to 34% (up 7ppts).
During 1QCY25, the company’s revenue grew by massive 26%YoY to Rs15.6bn compared to Rs7.9bn in the same period last year. We believe that Panadol Regular, CaC1000 and Panadol Extra are they products which supported revenue growth.Glaxo Revenue 23% Up in CY24
Haleon’s gross margin expanded sharply to 34% in 1QCY25 from 27% in the same period last year. This is primarily due to price hikes and lower raw material costs.
Operating expenses rose by 20%YoY in 1QCY25, mainly due to inflationary pressures and higher selling & distribution expenses aimed at driving sales.
On QoQ basis, earnings declined by 2% despite a 3% increase in revenue, as a 4ppt contraction in gross margins and higher selling & distribution costs offset the topline gains. Currently, the stock is trading at a CY25 PE of 11.7x,” Sherman Research said.
