Macter International Limited (PSX: MACTER) was incorporated in Pakistan as a private limited company in 1992 and was converted into a public limited company in 2011. The company is engaged in the manufacturing and marketing of pharmaceutical products.
Pattern of Shareholding
As of June 30, 2022, MACTER had a total of 45.811million shares outstanding which were held by 1030 diverse shareholders. Directors, CEO, their spouse and minor children had the major stake of 66.5 percent in the company. This category was followed by Banks, DFIs, NBFIs, Insurance companies, Pension and Mutual funds which collectively hold around 27.3 percent of the outstanding shares of MACTER. General public accounts for 5.95 percent of the outstanding shares of the company.
The remaining ownership is divided among other shareholders.
Financial Performance (2021-25)
Except for a year-on-year dip in 2021, MACTER’s topline posted growth over the period under consideration. Its bottomline registered unabated growth over the period. In fact in 2021, where the topline receded, the bottomline posted the highest ever growth.
The company’s margins which had been shrinking until 2020 posted a staggering rise in 2021 and 2022. In 2023, the margins dipped. In 2024, gross and operating margins recovered while net margin continued to slide. This was followed by a staggering growth in margins in 2025.
The detailed performance review of the period under consideration is given below.
MACTER’s net sales plummeted by 7 percent year-on-year to clock in at Rs.5141.63 million in 2021. This was on account of high-base effect as institutional sales were exceptionally high in 2020 on the back of remarkable public tender business.
In 2021, prescription business started recovering as patient flow to the hospitals resumed post COVID-19, however, it couldn’t reflect in the topline due to abrupt fall in public tender business during the year.
As prescription sales have high margins, gross profit improved by 3.80 percent year-on-year in 2021 with GP margin recuperating to 41.13 percent from 36.85 percent in 2020.
Operating expense trimmed down by 6.59 percent year-on-year in 2020 due to lower supply-chain impediments as well as cost cutting measures carried out in 2021 which included streamlined promotional and Training & development activities convened during the year.
Operating profit grew 55.94 percent bigger in 2021 with OP margin jumping up to 8.94 percent from 5.33 percent in 2020. Finance cost also gave breather as it slipped by 44.47 percent year-on-year in 2021 on account of lower discount rate and curtailed borrowings. As a consequence, bottomline grew by 1621.55 percent in 2021 to clock in at Rs. 257.03 million with EPS of Rs.6.65 and NP margin of 5 percent. This was against the EPS of Rs.0.38 and NP margin of 0.27 percent posted in 2020.
2022 also appears to be sluggish in terms of sales growth. MACTER recorded a skimpy 3.3 percent year-on-year rise in its topline which clocked in at Rs. 5311.25 million in 2022.
Prescription sales grew by 10 percent year-on-year in 2022; however, 42 percent lesser institutional sales contained the growth momentum during the year.Gross profit enlarged by 12.26 percent year-on-year in 2022 with GP margin reaching 44.70 percent which was the result of high prescription sales.
Distribution expense spiked by 10.96 percent year-on-year in 2022 due to new product launches in oncology and gynecology segments coupled with enhanced engagements with leading doctors and hospitals. Operating profit strengthened by 14.87 percent year-on-year in 2022 with OP margin reaching 9.95 percent.
Finance cost slashed by 70.20in 2022 percent despite monetary tightening during the year. This was the effect of repayment of loans by issuing right shares worth Rs. 1100 million during the year. Net profit picked up by 23.5 4 percent year-on-year in 2022 to clock in at Rs.317.53 million with NP margin of 6 percent and EPS of Rs. 7.19.
MACTER’s net sales grew 25.78 percent bigger to clock in at Rs.6680.39 million in 2023. This was contributed by superior performance in both prescription and institutional business during the year.
Export sales also performed commendably due to opening of Afghanistan market. Sharp depreciation in the value of Pak Rupee coupled with high import cost of pharmaceutical ingredients, high indigenous inflation and energy charges drove the cost of sales up by 32.63 percent in 2023.
Imposition of 1percent incremental sales tax on sales and non-adjustable input sales tax further stressed the margins during the year. Gross profit rose by 17.30 percent year-on-year in 2023, however, GP margin slid to 41.68 percent.
Operating expense grew by 19.47 percent year-on-year due to increased promotional campaigns, brand building and expansion in sales team. Operating profit grew by 17 percent year-on-year in 2023, however, OP margin lowered to 9.25 percent.
Finance cost multiplied by 59.55 percent in 2023 due to increased borrowings and higher discount rate. Net profit grew by 23.73 percent year-on-year in 2023 to clock in at Rs.392.87 million with NP margin of 5.9 percent and EPS of Rs.8.58.
MACTER registered 12.80 percent year-on-year rise in its topline which clocked in at Rs.7535.38 million in 2024. While prescription business posted a commendable rise of 23 percent in 2024, it was offset by an intended drop in government tender participation due to delays in payment. This resulted in lower institutional sales in 2024.
Higher participation from the prescription business resulted in improved sales mix which drove the gross profit up by 14.25 percent in 2024. GP margin also ticked up to 42.22 percent in 2024. 9 percent uptick in distribution expense was the result of higher payroll expense as well as sales promotion expense incurred during the year.
Administrative expense surged by 34 percent in 2024 primarily on account of higher salaries and benefit expense, repair and maintenance as well as legal and professional charges incurred during the year. Operating profit picked up by 15.28 percent in 2024 which culminated into OP margin of 9.46 percent.
Finance cost mounted by 63.88 percent in 2024 due to higher discount rate. This resulted in 8.73 percent increase in net profit which was recorded at Rs.427.16 million in 2024 with EPS of Rs. 9.32 and NP margin of 5.67 percent.
In 2025, MACTER registered 31.57 percent year-on-year improvement in its net sales which clocked in at Rs.9914.32 million. This came on the back of increased volumes and new product launches (Upacnet, Indyco M, Digebro, Seglutide etc.).
All three segments – prescription, institutional and export sales – rebounded during the year. 163 percent year-on-year growth registered by the export segment during the year speaks volumes of the company’s growing emphasis towards spreading its wings in the diverse geographical markets.
Gross profit strengthened by 40.11 percent in 2025 with GP margin attaining its optimum level of 44.96 percent. Operating expense mounted by 28.69 percent in 2025 predominantly due to higher payroll expense, sales promotion expense, freight charges incurred during the year.
Number of employees was increased from 1141 in 2024 to 1247 in 2025. The company recorded 73.22 percent taller operating profit in 2025 with OP margin clocking in at 12.45 percent. Finance cost inched up by 1.76 percent in 2025. This was due to increased long-term financing obtained to upgrade manufacturing facilities, invest in new manufacturing equipment and for the planned installation of additional 140 kW solar power capacity. Gearing ratio grew from 6.97 percent in 2024 to 10.61 percent in 2025.
MACTER recorded 72.66 percent year-on-year growth in its net profit which clocked in at Rs.737.53 million in 2025. EPS was recorded at Rs.16.10 while NP margin jumped up to 7.44 percent in 2025.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, MACTER recorded 21.10 percent year-on-year growth in its net sales which clocked in at Rs.8896.431 million. This came on the back of improved volumes and higher focus on export and prescription sales.
Focus on high margin segments enabled the company to record 30.25 percent stronger gross profit in 9MFY26 with GP margin clocking in at 48.10 percent versus GP margin of 44.72 percent recorded in 9MFY25.
Operating expense surged by 33.25 percent in 9MFY26 due to enrichment of the company’s operations to meet the rising demand, increase in marketing & promotional activities and focus on brand development and enhancing outreach.
MACTER’s operating profit strengthened by 20.17 percent in 9MFY26 with OP margin slightly ticking down to 11.41 percent from 11.50 percent in 9MFY25. Despite monetary easing, finance cost escalated by 21.71 percent in 9MFY26 on the back of increased financing obtained during the period. This was to meet working capital requirements and to invest in biotechnology initiatives.
Net profit ticked up by 6.57 percent to clock in at Rs.518.91 million. This translated into EPS of Rs.11.33 and NP margin of 5.83 percent in 9MFY26 as against EPS of Rs.10.63 and NP margin of 6.63 percent recorded in 9MFY25.
Future Outlook
With new product launches, focused advertising and promotional campaigns and inclination towards export market and high-margin prescription business, MACTER’s sales are expected to stay strong. Deregulation of the prices of non-essential medicines has allowed the pharmaceutical companies to share the cost burden with their consumers, which is also helping to maintain healthy margins.
MACTER is one of the few South Asian companies which is investing in biosimilars and hence is well-poised to capture a niche market both locally and internationally.
On the flipside, high cost of geographical expansion, investment in R&D, tax burden, inflationary pressure and increased borrowings amid the onset of monetary tightening may squeeze MACTER’s margins as it did in the 2026.