The second-largest pharma company in Pakistan, Abbott Laboratories kicked off 2016 as another quarter of robust growth ? the top line was up by 15 percent year-on-year, with costs kept in check, giving a 23 percent improvement in gross profits. The bottom line popped by 28 percent year-on-year.
Of sales, the multinational's exports in the first quarter of the year have improved by 46 percent over last year. This may have to do with the depreciation of the Rupee against the dollar in the last quarter of 2015. Moreover, domestic sales were up by 13 percent year-on-year; Abbott was among the handful of pharmaceuticals that obtained a stay order from the Sindh High Court at the start of this year on a price increase on some of its drugs, and this has helped to achieve higher sales and improve its margins.
Abbott commands a diverse product portfolio mix with leading brands in almost all therapeutically areas. In particular, it leads the adult nutrition segment in Pakistan with over 90 percent share. The company continues to launch new products and find new markets; perhaps new product launches this quarter were the reason why selling and distribution expenses were so high year-on-year.
As per the last annual report, the company has been continuously making investments in production facilities for process improvement, energy conservation, and improvement in quality. Its enormous investments in improving productivity seem to have had the desired impact on its financials.
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