At Highnoon Laboratories, profits surge on export growth

Highnoon Laboratories Limited (HINOON), one of Pakistan’s most dynamic pharmaceutical firms, has announced its financial results for the calendar year 2024, revealing a stellar 35% increase in net profit that outpaced revenue growth – a clear signal of growing operating leverage and cost efficiency within the company.

The Lahore-based pharmaceutical company reported a net profit of Rs3.25 billion for CY24, a sharp increase from Rs2.40 billion in the previous year. Earnings per share (EPS) rose from Rs45.35 to Rs61.41, underscoring strong profitability despite a competitive and volatile operating environment.

Highnoon’s revenue from customer contracts climbed to Rs23.3 billion, reflecting a 20% year-on-year increase from Rs19.4 billion in 2023. Gross profit grew by an even steeper 29%, supported by an improved gross margin of 51% – up from 48% in CY23. Analysts attribute this margin uplift to scale-driven efficiencies and strategic cost management in marketing and procurement.

These results suggest Highnoon is now firmly achieving operating leverage. Revenue is rising, but profits are growing faster.

Operationally, Highnoon saw an impressive 48% increase in profit from operations, climbing to Rs4.8 billion. Meanwhile, other income more than doubled, reaching Rs432 million, and despite a near tripling of finance costs, profit before tax rose 47% year-on-year.