AGP Limited: Profits Surge in Second Quarter of 2025

AGP Limited (AGP), one of Pakistan’s major pharmaceutical companies, is set to announce impressive results for the second quarter of 2025 (April–June). The company’s earnings are expected to more than double compared to the same period last year, showing strong performance despite a seasonal dip in sales.

Earnings growth

Profit after tax (PAT) is expected to reach PKR 968 million, which is around 1.5 times higher than last year’s PKR 391 million for the same quarter. This translates to an earnings per share (EPS) of PKR 2.79, up from PKR 1.36 a year ago.

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Revenue performance

Sales are projected at PKR 6.9 billion, up 20% year-on-year. This growth comes from higher sales volumes, the deregulation of non-essential medicines (allowing for flexible pricing), and price increases for several essential medicines.

Seasonal slowdown

While revenue is strong compared to last year, it is expected to be 4% lower than the previous quarter. This is largely due to seasonal factors, as certain medicines see reduced demand during this time of the year.

Improved margins

Gross profit margins are expected to improve to 57%, compared to 55% in the same quarter last year. The increase is mainly due to higher drug prices, although margins have remained flat compared to the previous quarter as lower sales volumes offset pricing gains.

Lower finance costs

AGP is also benefiting from reduced borrowing costs. Finance expenses are expected to drop 52% year-on-year, thanks to lower interest rates, which further supports overall profitability.

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Half-year snapshot

For the first half of 2025, AGP’s profit is expected to reach PKR 2.03 billion, up 40% from the same period in 2024. The growth reflects strong pricing power, healthy sales, and cost savings from lower interest expenses.

AGP’s second-quarter results show the strength of its business model. Even with seasonal sales dips, the combination of higher prices, strong margins, and lower finance costs has driven significant earnings growth. With continued demand for its medicines and a stronger financial position, AGP is on track for a solid year.

Source: Taurus Securities Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →