Highnoon Labs’ profit jumps 22%, declares 500% dividend

07-Apr-2026


MettisGlobal


April 7, 2026 (MLN): Highnoon Laboratories Limited (PSX: HINOON) posted a robust net profit of Rs4.13 billion for the year ended 2025, up 21.83% from Rs3.39bn recorded in 2024.

The company’s earnings per share (EPS) also rose sharply to Rs77.92 from Rs63.95 in the corresponding period last year.

The strong performance was driven by a 12.44% increase in revenue from contracts with customers, which rose to Rs27.71 billion from Rs24.64bn in 2024.

Gross profit surged 21.31% to Rs15.20bn, supported by only a moderate 3.26% rise in the cost of revenue to Rs12.51bn.

Operational expenses rose across the board, with distribution, selling, and promotional expenses increasing 17.14% to Rs7.10bn, while administrative and general expenses climbed 30.44% to Rs1.21bn.

Research and development outlays edged up 13.97% to Rs10.79m, and other operating expenses grew 9.57% to Rs583.49m. Despite these higher expenditures, profit from operations expanded 25.92% to Rs6.29bn, up from Rs5.00bn last year.

Other income remained largely stable at Rs441.0m, virtually unchanged from the prior year. Finance costs fell sharply by 67.87% to Rs130.91m, providing additional support to the bottom line.

After accounting for minor levies of Rs13.23m and a higher taxation charge of Rs2.46bn (up 51.62% YoY), the company finalized its net profit at Rs4.13bn for the year.

Showing its strong financial performance, Highnoon Laboratories declared a cash dividend of 500%, rewarding shareholders with a substantial return.

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED DECEMBER 31, 2025 (Rs.)

Description

2025

2024

Change (%)

Revenue from contracts with customers

27,705,637,954

24,640,892,959

12.44%

Cost of Revenue

(12,507,003,884)

(12,111,880,293)

3.26%

Gross Profit

15,198,634,070

12,529,012,666

21.31%

Distribution, selling and promotional expenses

(7,097,071,133)

(6,058,394,373)

17.14%

Administrative and general expenses

(1,213,403,604)

(930,223,552)

30.44%

Research and development expenses

(10,793,866)

(9,470,982)

13.97%

Other operating expenses

(583,491,230)

(532,549,199)

9.57%

Profit from operations

6,293,874,237

4,998,374,560

25.92%

Other income

440,979,971

441,506,392

-0.12%

Finance cost

(130,906,685)

(407,381,214)

-67.87%

Profit before income tax and levy

6,603,947,523

5,032,499,738

31.23%

Levy

(13,232,674)

(19,930,608)

-33.61%

Profit before income tax

6,590,714,849

5,012,569,130

31.48%

Taxation

(2,462,397,447)

(1,624,053,116)

51.62%

Profit for the year

4,128,317,402

3,388,516,014

21.83%

Earnings per share - basic and diluted

77.92

63.95

21.85%

 

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