Liven Pharma Limited reported a significant reduction in its annual losses for the financial year ended June 30, 2026, despite a decline in sales. The company’s financial statements show improvements in its bottom line and cash flow position compared with the previous financial year, although profitability remains a key challenge.

Annual Loss Falls Significantly

According to the company’s financial statements, Liven Pharma recorded a net loss after taxation of Rs31.14 million for FY2026, compared with a loss of Rs584.46 million in FY2025. This represents a substantial reduction in the annual loss, reflecting a considerable improvement in its reported financial performance.

The company’s loss per share also improved significantly, reaching Rs0.28 for FY2026 compared with a restated loss per share of Rs7.11 in the previous year.

However, the company continued to report a loss, highlighting the need for further improvements in revenue generation, cost management and operational efficiency.

Revenue Declines Despite Lower Costs

Liven Pharma’s sales declined to Rs105.81 million in FY2026 from Rs127.27 million in FY2025. Despite the lower revenue, the company reported a gross profit of Rs26.65 million, compared with Rs17.96 million in the preceding year.

Administrative and general expenses remained substantial at Rs371.29 million, while selling and distribution expenses stood at Rs9.78 million. Other expenses amounted to Rs53.77 million, and finance costs increased to Rs2.54 million.

The company reported an operating loss of Rs77.14 million for the year. After accounting for other income, levies and taxation, its loss after tax was significantly lower than the previous year’s figure.

These results indicate that although Liven Pharma improved its gross profit and reduced its overall annual loss, its financial performance remains under pressure from operating expenses and relatively low sales.

Asset Base and Equity Position

As of June 30, 2026, Liven Pharma reported total assets of approximately Rs1.22 billion, compared with Rs822.90 million a year earlier.

The increase in total assets was accompanied by a rise in shareholders’ equity to Rs985.46 million from Rs633.86 million in FY2025. The company’s financial position also reflected issued share capital of Rs1.13 billion and a revaluation surplus of approximately Rs188.91 million.

However, accumulated losses increased to Rs333.86 million, demonstrating the continuing impact of the company’s previous financial difficulties.

The increase in total assets and equity provides an important perspective on the company’s balance sheet, although these figures alone do not establish whether its operating performance can be sustained over the longer term.

Cash Flow Turns Positive

One of the notable developments in FY2026 was the improvement in cash generation. Liven Pharma reported net cash generated from operating activities of approximately Rs8.99 million, compared with net cash used in operating activities of Rs1.72 million in FY2025.

The company also reported positive net cash flow from financing activities of approximately Rs187.19 million, supported in part by proceeds from the issuance of right shares amounting to Rs200 million.

Meanwhile, net cash used in investing activities stood at approximately Rs185.81 million, reflecting significant investment-related outflows during the year.

Cash and cash equivalents increased to Rs18.25 million at the end of FY2026 from Rs7.88 million at the beginning of the period. The improvement in operating cash flow is encouraging, although the company’s liquidity position and ability to finance future operations remain important factors to monitor.

Outlook: Sustaining the Recovery

Liven Pharma’s FY2026 results present a mixed picture. The sharp reduction in annual losses, improvement in gross profit and return to positive operating cash flow are encouraging developments. At the same time, declining sales, continuing operating losses and accumulated losses remain areas of concern.

For investors and market participants, the company’s future performance will depend on its ability to strengthen sales, manage expenses, improve operating profitability and maintain adequate liquidity.

Overall, Liven Pharma has made progress in reducing its annual loss, but sustained improvement in revenue and core business operations will be essential for establishing a more stable financial position.