Jawad Ahmed ISLAMABAD, May 31 (INP-WealthPK): Registered in 1948 as a private marketing company, Abbott Laboratories (Pakistan) Limited is now one of the country’s major pharmaceutical firms. The company's main business is producing, importing and distributing branded, generic pharmaceutical, nutritional, diagnostic, diabetes care, molecular, hospital and consumer products. Pattern of shareholding

PATTERN OF SHAREHOLDING – ABBOTT As of December 31, 2021
Categories of Shareholders	Shares Held	Percentage
Directors, CEO and their spouse(s) and minor children	22,453	0.02
Associated Companies, Undertakings and Related Parties	77,189,066	78.85
NIT and ICP	980	0.00
Banks, DFI, Non-Banking Finance Institutions	1,149,458	1.17
Insurance Companies	3,668,426	3.75
Modarabas and Mutual Funds	3,554,676	3.63
General Public – local	9,569,228	9.77
Others	2,746,015	2.81
Total	97,900,302	100.00
Source: Company Annual Report

  As of December 31, 2021, nearly 79% of the company's shares were owned by affiliated entities and associated parties. A subsidiary of the corporation – Abbott Asia Investments Limited – owns 77.9% of the total shares held in this category. The general public owns 9.77% of the shares. Insurance companies own 3.75% of the company's stock, while modaraba and mutual funds own 3.63%. The board of directors, the chief executive officer, their spouses, and their children, own less than 1% of the company's equity. Company Turnover Though Abbott's revenues have been consistently increasing, the overall profit ratio kept declining from calendar year 2016 to 2019. However, since CY2019, the profit margin ratio is on the increase. In CY2018, Abbott's net sales increased by 13.9% to reach Rs29.7 billion over the previous year. Its pharmaceutical sales increased by 12.0% driven by sustained volume growth of established brands. Its nutritional sales increased by 23.6% mainly due to volume growth in PediaSure and Ensure, the formula milk for children. The sales in general health care (GHC), diagnostic and diabetes care cumulatively grew by 12.1%. The pharmaceutical industry is significantly reliant on imported raw materials. Continual increases in inflation and currency depreciation raise the cost of sales, lowering the company's profit margin ratio. [caption id="attachment_67738" align="aligncenter" width="696"] Source: ABBOTT Annual Report/ WealthPK Research[/caption] In CY2019, the company’s stand-alone revenues were Rs30.155 billion, growing by 1.5% compared to the year 2018. Gross profit was Rs1.29 billion in 2019, 51.8% down from the profit of previous year. Due to a difficult economic and regulatory climate, the company’s pharmaceutical sales fell by 3.1%. However, its sales of nutritional supplements climbed by 16.0%. The combined growth of GHC, diagnostic and diabetes care was 10.4%. [caption id="attachment_67737" align="aligncenter" width="696"] Source: ABBOTT Annual Report/ WealthPK Research[/caption] In CY2020, the company’s net sales climbed by 17% to Rs35.283 billion from Rs30.155 billion over the previous year. Its pharmaceutical sales increased by 12.6% following sustained performance of established brands. Its nutritional sales increased by 37.5%, mainly driven by increase in sales of adult nutritional supplements. The diagnostic sales grew by 4.1%, whereas sales in GHC and diabetes care cumulatively grew by 5.6%. The company's costs grew due to increased fuel and power prices as a result of rising tariffs and currency devaluation. [caption id="attachment_67736" align="aligncenter" width="696"] Source: ABBOTT Annual Report/ WealthPK Research[/caption] In CY2021, net sales of the company increased by 20.7% to reach Rs42.57 billion. Its pharmaceutical sales increased by 15.5% following sustained performance of established brands, augmented by positive performance of new product launches. Its nutritional sales increased by 17.7%, mainly driven by increase in sales of adult nutritional supplements. The diagnostic sales grew by 75.9%, driven by the Covid-19 testing and increased OPD activities compared to last year. However, sales in GHC and diabetes care cumulatively grew by 60.8%. During the year, the company's cost of sales increased by 13%, owing to increase in production cost due to exchange rate fluctuation, inflation, increase in prices of fuel and electricity. Quarterly Report In the first quarter of CY22, the company declared 19% increase in sales of products to Rs11.771 billion from Rs9.891 billion in the same period of the previous year. Its pharmaceutical and nutritional sales increased by 17% and 19%, respectively. The company’s gross profit increased by 7.62% to Rs4.081 billion compared to 3.792 billion in the first quarter of the previous year. On the other hand, income received by different sources climbed by 62% to Rs225 million.

ABBOTT: Quarterly Results (Rs. in Million)
	1QCY22	1QCY21	YOY
Net income	11,771	9,891	19%
Cost of Sales	-7,690	-6099	26.1%
Gross profit	4,081	3,792	7.62%
Other operating expenses	-1,816	-1,659	9.46%
Administrative expenses	-207	-170	21.76%
Other expenses	-254	-101	151.5%
Other income	225	139	61.87%
Finance cost	-15	-25	40%
Profit/ (loss) before taxation	2,014	1976	1.92%
Provision for Taxation	-572	-533	7.32%
Profit/ (loss) after taxation	1,442	1,443	-0.07%
Earnings per share	14.73	14.73
Source: Company Annual Report

Other expenses increased by over 151% in 1QCY22, owing to exchange losses as the Pakistani rupee kept on devaluing against the US dollar. Despite an increase in sales, the company's administrative and operating expenses did not demonstrate a significant gain in profit over the period under consideration.