KARACHI: Abbott Laboratories (Pakistan) Limited delivered a stronger financial performance during the first half of 2026, with sales growth, improved margins and higher earnings helping the company post a significant increase in profitability.
According to the company’s unaudited condensed interim financial statements for the six months ended June 30, 2026, Abbott Pakistan recorded net sales of Rs38.03 billion, compared with Rs36.41 billion in the same period last year, representing growth of around 4%.
The improvement was supported mainly by the pharmaceutical and diagnostics businesses. Pharmaceutical sales increased 8%, reflecting sustained performance from established brands, while the diagnostics segment grew 12%. In contrast, nutritional sales declined 7% during the period.
Profitability improves significantly
Abbott Pakistan’s gross profit increased to Rs14.45 billion during the six months, compared with Rs12.61 billion a year earlier. The company’s gross profit margin consequently improved to 38% from 35%, reflecting cost optimisation and efficiency measures.
The pharmaceutical segment was a key contributor to the improvement, with its gross margin rising to 40% from 34%. The nutritional segment maintained a gross margin of 42%.
Despite higher operating costs, the stronger gross margin helped lift profit before income tax to Rs7.04 billion, compared with Rs6.00 billion in the corresponding period of 2025.
After taxation, profit for the period stood at Rs4.14 billion, up from Rs3.54 billion a year earlier. This translates into an increase of roughly 17% year-on-year. Earnings per share also improved to Rs42.29 from Rs36.19.
Second quarter also shows growth
The company maintained its positive momentum in the April-June quarter. Sales increased 7% year-on-year, while pharmaceutical sales rose 9%. Nutrition sales, however, declined 9% during the quarter.
Gross margin improved to 38% from 36% in the same quarter last year. Although operating expenses increased 15%, higher profitability resulted in profit after tax rising by Rs256 million compared with the second quarter of 2025.
Financial statements show quarterly profit after tax of approximately Rs2.20 billion, compared with Rs1.94 billion in the corresponding period of 2025, while quarterly EPS increased to Rs22.47 from Rs19.85.
Costs and cash position remain key areas to watch
Selling and distribution expenses rose 11% during the first half, reflecting increased business activity and inflationary pressures. The company also reported higher tax charges as a result of improved margins.
At the end of June, Abbott Pakistan held Rs9.44 billion in cash and cash equivalents, compared with Rs13.34 billion at the end of December 2025. The company generated Rs662 million in net cash from operating activities during the six-month period.
The company also continued investing in its operations. Additions to property, plant and equipment amounted to Rs640.2 million, while capital work-in-progress stood at Rs2.78 billion at June 30, 2026.
Company highlights challenging outlook
Looking ahead, Abbott Pakistan said it continues to operate in a fluid regulatory, fiscal and macroeconomic environment. Management highlighted geopolitical tensions, global oil prices, inflation and foreign exchange conditions as factors that could affect the business.
The company said economic stability, supportive fiscal policies and continued regulatory reforms aligned with international practices would be important for the pharmaceutical industry. Abbott Pakistan also identified operational excellence, strategic investment and maintaining a strong balance sheet as important drivers of future performance.
The financial statements were authorised for issue by the board on August 27, 2026. The six-month figures are unaudited and subject to a limited-scope review by the statutory auditors.
Overall, Abbott Pakistan’s first-half results point to a solid improvement in profitability, with stronger pharmaceutical and diagnostics sales and better gross margins more than offsetting higher operating costs. The company’s ability to sustain margin gains while navigating inflation, regulatory changes and broader economic pressures will remain central to its performance in the second half of 2026.
