⚡ Flash Summary
BFBIO’s Q3 2025 results show significant revenue growth, increasing by 75% compared to the same period last year, reaching Rs. 2,432 million. This growth is driven by strong performance in both in-market generic sales and institutional sales, attributed to increased volume from existing and new products after expanding commercial operations. Gross profit margin also improved, climbing to 43% due to changes in sales mix and better capacity utilization. Despite increased selling and distribution expenses, the company achieved a profit after tax of Rs. 160 million, representing a 38% increase; however, EPS saw a marginal decline due to an increase in the weighted average number of shares post-IPO.
📌 Key Takeaways
- 📈 Revenue surged by 75%, reaching Rs. 2,432 million compared to Rs. 1,386 million in Q3 2024.
- 💊 In-market generic sales grew by 57% year-over-year.
- 🏥 Institutional sales experienced a substantial increase of 209%.
- 🏭 Line II commercial operations significantly contributed to volume growth.
- 💰 Gross profit margin improved from 41% to 43%.
- 🚀 Selling and distribution expenses increased by 133% to support topline growth.
- 🏢 Administrative expenses rose by Rs. 28 million due to salaries and inflation.
- ✅ Profit after tax increased by 38%, reaching Rs. 160 million compared to Rs. 115 million.
- 📉 Earnings per share (EPS) slightly decreased to Rs. 1.81 from Rs. 1.82.
- 📃 Weighted average number of shares increased to 88.3 million from 63.3 million post-IPO.
- 🏭 Increased capacity utilization led to better absorption of factory overheads.
- 🌱 Company listed on the Pakistan Stock Exchange on October 21, 2024.
🎯 Investment Thesis
Based on the Q3 2025 results, a HOLD recommendation is appropriate. While the company demonstrates strong revenue growth and improved gross profit margin, the increased operating expenses and EPS dilution raise concerns. The potential for continued growth in sales volume and effective cost management could drive future profitability. Before upgrading to a BUY, further evidence of sustained EPS growth and improved operational efficiencies are needed. Before downgrading to SELL, cost control and EPS dilution need to be closely monitored.
Disclaimer: AI-generated analysis. Not financial advice.