Pakistan’s second-largest pharmaceutical company by market share, Abbott Laboratories (Pakistan) Limited (PSX: ABOT) has announced its results for its first quarter of 2017. Although the company saw its top line grow by an impressive 10 percent year-on-year, costs grew by a greater proportion, shrinking the gross margins. The bottom line was lower by two percent over last year.
Despite a drop in administrative expenses, selling and distribution was up by 12 percent year-on-year. Other charges also grew significantly, hurting the bottom line and net margins.
Growth in the top line was driven primarily by local sales, which increased by 10 percent and accounts for 95 percent of the total sales. Although exports increased by 18 percent during the period, they still form a paltry portion of the overall pie.
Abbott enjoys high impact from a balanced portfolio. As per the company’s annual report, the year 2016 saw 12 new products launched across all its business segments – pharmaceuticals, nutrition, and others (diabetes, diagnostic equipment, and general healthcare products). Moreover, during the year, Abbott acquired St. Jude Medical, a medical device company. The benefits of these are likely to have been reaped in the quarter under review.
Abbott maintains market leadership in Pakistan in nutrition, and several of its pharmaceutical and therapeutic brands are market leaders in their respective categories.
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