AGP Limited (PSX: AGP) recorded a robust 46% increase in net profit, reaching Rs4.34 billion for the year ended December 31, 2025, up from Rs2.96 billion in the previous year. The company’s impressive bottom-line growth was supported by higher revenue, effective cost control, and a significant reduction in finance costs.
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Earnings per share (EPS) rose sharply to Rs13.34, compared to Rs9.53 in the prior year, reflecting strong profitability and value creation for shareholders.
Dividend Announcement
In recognition of its strong performance, AGP Limited declared a final cash dividend of Rs6 per share (60%) for the calendar year 2025. This is in addition to the Rs2 per share (20%) interim dividend already paid during the year, bringing the total dividend for CY25 to Rs8 per share (80%).
Revenue and Gross Profit
Revenue from contracts with customers climbed 15.4% year-on-year to Rs28.89 billion from Rs25.03 billion, reflecting sustained demand for the company’s pharmaceutical products.
Cost of sales increased by only 11% to Rs11.64 billion, significantly slower than revenue growth. This effective cost control boosted gross profit by 18.6% to Rs17.25 billion, demonstrating improved operational efficiency and margin expansion.
Operating Expenses
On the operating side, the company faced moderate cost pressures:
| Expense Category | 2025 | 2024 | Change |
|---|---|---|---|
| Administrative Expenses | Rs1.00bn | Rs0.94bn | +6.4% |
| Marketing & Selling Expenses | Rs7.89bn | Rs6.30bn | +25.1% |
| Other Expenses | Rs0.34bn | Rs0.30bn | +14.2% |
| Other Income | Rs0.12bn | Rs0.14bn | -11.4% |
The significant increase in marketing and selling expenses reflects investment in market expansion and promotional activities. Despite these increases, operating profit before finance costs showed solid growth.
Finance Cost Reduction: Key Driver
A critical factor in AGP’s profit surge was the 46% reduction in finance costs to Rs1.44 billion, down from Rs2.69 billion in the previous year. This substantial decrease in debt-servicing costs reflects improved liability management, reduced borrowing levels, or refinancing at more favorable rates.
Bottom Line Performance
Profit before income tax climbed 47.9% to Rs6.52 billion, while taxation increased 51% to Rs2.19 billion (reflecting higher profitability). After accounting for levies and taxes, net profit reached Rs4.34 billion, marking a 46% year-on-year increase.
Financial Summary
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Revenue | Rs28.89bn | Rs25.03bn | +15.4% |
| Gross Profit | Rs17.25bn | Rs14.55bn | +18.6% |
| Finance Cost | Rs1.44bn | Rs2.69bn | -46.4% |
| Profit Before Tax | Rs6.52bn | Rs4.41bn | +47.9% |
| Net Profit | Rs4.34bn | Rs2.96bn | +46.4% |
| Basic EPS | Rs13.34 | Rs9.53 | +40.0% |
| Total Dividend | Rs8/share (Rs6 final + Rs2 interim) |
About AGP Limited
AGP Limited (PSX: AGP) is a leading Pakistani pharmaceutical company engaged in the manufacturing, marketing, and distribution of high-quality pharmaceutical products. The company serves patients and healthcare providers across Pakistan with a diverse portfolio of therapeutic products.
