Key Takeaways
- OTSU's topline grew by 14.34 percent year-on-year to Rs.2546.28 million in 2021.
- Gross margin strengthened significantly, climbing from 26.90 percent to 33.20 percent between 2020 and 2021.
- The company increased its production capacity for IV solutions and plastic ampoules during the period.
Otsuka Pakistan Limited, a public limited company incorporated in 1988, has reported steady growth in its topline over the years. As of June 30, 2025, the company had a total of 12.1 million shares outstanding, held by 1549 shareholders. Associated companies and undertakings are the largest shareholders, accounting for 67.89 percent of the outstanding shares.
The historical performance review from 2021 to 2025 shows that while the company’s top line has shown year-on-year growth, its bottomline has been volatile. In particular, the bottomline was positive in 2021 and 2025 but negative in 2023 and 2024.
The margins of Otsuka Pakistan Limited followed an upward trajectory from 2020 to 2021 only to decline in 2022 and 2023. However, in 2024, the gross margin continued its downward trend while operating margin improved. In 2025, all margins strengthened.
In 2021, Otsuka Pakistan Limited’s topline multiplied by 14.34 percent year-on-year to reach Rs.2546.28 million. This growth was primarily driven by the sales of clinical nutritional products. The company produced 20.3 million bottles of IV solutions and 14.6 million bottles of plastic ampoules, resulting in a capacity utilization rate of 64.6 percent and 69.5 percent respectively.
Cost optimization measures implemented by the company helped to keep cost of sales at only 4.51 percent year-on-year growth. Gross profit increased by 41 percent year-on-year with gross margin rising to 33.20 percent from 26.90 percent in 2020.
Distribution and administrative expenses rose, with distribution costs increasing by 4.26 percent and administrative expenses growing by 9.1 percent due to higher payroll expenses and elevated freight charges. The company also introduced a new product, OTSUFLOX (Ciprofloxacin), during the year.
Other income saw a significant increase of 133.57 percent in 2021, largely attributed to favorable exchange rates that resulted in a hefty exchange gain. Other expenses fell by 21.27 percent due to no exchange losses and reduced provisions against doubtful debts.
Operating profit grew by 170.93 percent with operating margin increasing to 19.18 percent from 8 percent in 2020, indicating a strong turnaround for the company’s operational performance.
