HINOON Q1CY26 profit grows 10%
29-Apr-2026
MettisGlobal
April 29, 2026 (MLN): Highnoon Laboratories Limited (PSX: HINOON)
reported a solid 10% increase in its consolidated net profit for the first
quarter ended March 31, 2026, recording Rs1.05bn compared to Rs954.56m in the
corresponding period last year.
Reflecting this healthy bottom-line growth, the company's
basic and diluted earnings per share (EPS) expanded to Rs19.78 from Rs18.02 in
Q1 2025.
The primary driver of this profit expansion was steady
top-line growth coupled with reduced direct costs.
HINOON’s net revenue from contracts with customers posted a
7% year-on-year increase, rising to Rs7.52bn from Rs7.03bn.
Notably, the cost of revenue actually declined by 6%,
settling at Rs3.14bn.
This highly favorable cost dynamic allowed the gross profit
to secure a robust 19% expansion, reaching Rs4.38bn up from Rs3.68bn in the
prior year.
On the operational front, the company kept overhead growth
moderate and proportionate.
Distribution, selling, and promotional expenses rose by 5%
to Rs1.97bn, while administrative and general expenses also increased by 5% to
Rs366.65m.
Although other operating expenses spiked by 35% to
Rs162.33m, total operating expenses grew by just 7%.
The sheer strength of the gross margin expansion easily
outpaced these operational costs, driving the profit from operations up by a
formidable 40% to Rs1.88bn.
Below the operating line, HINOON experienced relatively
stable financial dynamics. The company successfully trimmed its finance cost by
29%, dropping it to Rs19.82m from Rs27.76m. This offset a slight 10% dip in
other income, which fell to Rs87.81m.
Boosted by the strong operational performance and lower
finance costs, the profit before income tax registered an impressive 39%
increase, reaching Rs1.95bn.
However, a massive 99% surge in taxation expense, which
nearly doubled to Rs900.58m, consumed a significant chunk of these pre-tax
gains.
Despite this heavy tax burden, Highnoon Laboratories
securely closed the quarter with a 10% leap in its final net profit, settling
at Rs1.05bn.
|
STATEMENT OF PROFIT OR
LOSS FOR THE THREE MONTH ENDED MARCH 31, 2026 (Rs.) |
|||
|
Description |
2026 |
2025 |
change % |
|
Revenue
from contracts with customers- net |
7,520,045,908 |
7,025,898,202 |
7% |
|
Cost
of revenue |
(3,141,505,702) |
(3,342,282,703) |
-6% |
|
Gross
profit |
4,378,540,206 |
3,683,615,499 |
19% |
|
Distribution,
selling and promotional expenses |
(1,968,883,406) |
(1,874,627,715) |
5% |
|
Administrative
and general expenses |
(366,653,405) |
(347,603,076) |
5% |
|
Other
operating expense |
(162,331,568) |
(120,269,365) |
35% |
|
(Operating
expenses subtotal) |
(2,497,868,379) |
(2,342,500,156) |
7% |
|
Profit
from operations |
1,880,671,827 |
1,341,115,343 |
40% |
|
Other
income |
87,814,893 |
97,833,917 |
-10% |
|
Finance
cost |
(19,818,307) |
(27,757,244) |
-29% |
|
Profit
before income tax and levy |
1,948,668,413 |
1,411,192,016 |
38% |
|
Levy |
- |
(4,838,674) |
|
|
Profit
before income tax |
1,948,668,413 |
1,406,353,342 |
39% |
|
Taxation |
(900,583,979) |
(451,789,185) |
99% |
|
Profit
for the period |
1,048,084,434 |
954,564,157 |
10% |
|
Earnings
per share - basic and diluted (Rupees) |
19.78 |
18.02 |
10% |
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