Federal Pharmaceutical (03933.HK) annual net profit drops 21.6% to 2.086 billion yuan, with a final dividend of 26 cents per share.

Gelonghui, March 24 - United Pharmaceutical (03933.HK) announced its annual results. For the fiscal year 2025, the group recorded revenue of approximately RMB 13.211 billion, a year-on-year decrease of 4.0%. The profit attributable to shareholders was RMB 2.086 billion, a year-on-year decrease of 21.6%. The earnings per share were RMB 1.1065. The board of directors proposed a final dividend of RMB 0.26 per share. Together with the interim dividend of RMB 0.16 per share already distributed, the total annual dividend is RMB 0.42 per share, with a payout ratio of 38.0%.

During the year, the segment revenue of intermediate products, active pharmaceutical ingredients, and formulation products (including inter-segment sales) decreased by 31.4%, decreased by 19.8%, and increased by 41.7% year-on-year, respectively. The segment profits decreased by 79.4%, decreased by 53.4%, and increased by 455.3% year-on-year, respectively. The profits of the intermediate products and active pharmaceutical ingredients segments declined significantly, mainly due to the impact of falling market prices. The profit of the formulation products segment increased significantly, mainly benefiting from licensing fee income from Novo Nordisk.

On the financial side, the group adjusted its domestic and overseas borrowing mix, balancing short-term and long-term loans to lower financial costs, continuously enhancing financial flexibility and capital utilization efficiency, and maintaining a robust financial position. To reduce exchange rate fluctuation risks and financial costs, the group designated RMB as the primary borrowing currency during the year. During the year, the group’s financial cost was RMB 69.7 million, a year-on-year increase of 99.5%. The capitalized borrowing cost for the year was RMB 57.5 million.