Transmission of Half Yearly Financial Statements for the Period Ended 31-12-2025

Research in the service of mankind

DECEMBER 2025 HALF YEARLY REPORT

Elevating life by advancing health

& well-being for generations to come

Contents 02

Company Information

06

Directors' Review Report (Urdu)

08

Unconsolidated Statement of Financial Position

03

Directors' Review Report

07

Independent Auditor's Review Report

09

Unconsolidated Statement of Profit or Loss and Other Comprehensive Income

10

Unconsolidated Statement of Changes in Equity

12

Notes to the Unconsolidated Financial Statements

11

Unconsolidated Statement of Cash Flows

27

Consolidated Financial Statements

DECEMBER 2025 01

Company Information

Board of Directors

Board of Audit Committee

Ms. Shaista Khaliq Rehman Chairperson

Mr. Zubair Razzak Palwala Member

Mr. Munis Abdullah Member

Board of HR & Remuneration Committee Mr. Muhammad Zubair Haider Shaikh Chairman Mr. Munis Abdullah Member

Ms. Shaista Khaliq Rehman Member

Chief Financial Officer

Mr. S. Asim Raza Zaidi

Company Secretary

Mr. Mudassir Habib Khan

Auditors

A. F. Ferguson & Co.

Legal Advisors

Mohsin Tayebaly & Co.

Bankers

Al Baraka Bank (Pakistan) Limited Askari Bank Limited

Bank AL Habib Limited Bank Alfalah Limited

Bank Islami Pakistan Limited The Bank of Punjab

Dubai Islamic Bank Pakistan Limited Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited Meezan Bank Limited

National Bank of Pakistan Soneri Bank Limited

SHARE REGISTRAR

CDS Share Registrar Services Limited Head Office, CDC House,

99-B, Block 'B' S.M.C.H.S.,

Main Shahrah-e-Faisal Karachi - 74400

REGISTERED OFFICE

One IBL Centre, 2nd Floor, Plot # 1, Block 7 & 8 D.M.C.H.S.,

Tipu Sultan Road,

Off Shahra-e-Faisal Karachi

02

HALF YEARLY REPORT 2025

Directors' Report to the Members -Unconsolidated

We are pleased to present the unconsolidated interim financial information of the company for the half year ended December 31, 2025. These financial statements have been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting'. The directors' report is prepared in accordance with section 227 of the Companies Act, 2017 and Chapter XII of the Listed Companies (Code of Corporate Governance) Regulations, 2019.

Financial highlights

Revenue of the company increased to Rs. 17.58 billion, reflecting a 34% increase compared to the same period last year. The significant growth in sales was underpinned by improved product availability, optimisation of the supply chain and enhanced commercial execution. The gross profit increased substantially to Rs. 9.90 billion, with the gross profit margin improving to 56.3%, compared to 49.2% in the corresponding period last year. This improvement was primarily driven by strategic price adjustments and a favorable shift in the product mix.

Finance costs, which had been a significant strain on the Company's profitability in prior periods, declined significantly to Rs. 520 million from Rs. 1,369 million in the corresponding period last year. This reduction was primarily attributable to the settlement of long-term borrowings following the divestment of Searle Pakistan Limited (SPL) and the easing of benchmark interest rates during the period. The resulting improvement in leverage and liquidity is also reflected in the reaffirmation of the Company's entity ratings at 'AA-/A1' with a Stable outlook by VIS Credit Rating Company Limited.

The comparative period also included a one-off impairment loss of Rs. 927 million relating to the Company's investment in SPL, which had adversely impacted prior year profitability.

As a result, the company recorded a profit after tax of Rs. 1,785 million, compared to a loss of Rs. 39 million in the corresponding period of the previous year.

Below is a summary of the financial results for the half year ended December 31, 2025:

Half year ended

December 31,

2025

December 31,

2024

(Rupees in thousand)

DECEMBER 2025 03

EARNINGS PER SHARE

Basic earnings per share after taxation for the period is Rs. 3.03 (December 2024: Rs. (0.07)). There is no dilution effect on the basic earnings per share of the Company, as the Company had no convertible dilutive potential ordinary shares outstanding as at December 31, 2025.

.

FUTURE OUTLOOK

Searle remains focused on expanding its market presence and sustaining organic growth while continuing to improve lives. Despite ongoing macroeconomic and geopolitical challenges, the Company is confident in its ability to navigate these with resilience and deliver consistent performance.

Recent developments, including the deregulation of non-essential drug prices, lower interest rates, and a stable exchange rate have improved business predictability and created a favorable environment for growth. The recent approval of Denosumab injections by the Drug Regulatory Authority of Pakistan marks another milestone in Searle's biosimilar journey, strengthening its leadership in biotechnology and access to affordable advanced therapies.

The Company continues to build momentum in exports, particularly across GCC and CIS markets, supported by new manufacturing approvals from regional health authorities. At the same time, Searle is accelerating its digital transformation and sustainability initiatives to enhance operational efficiency and align with global standards.

We thank our shareholders for their continued trust and support. Searle remains committed to disciplined execution, innovation, and creating enduring value for all stakeholders.

For and on behalf of the Board

Tahir Ahmed Zubair Palwala

Chief Executive Officer Director

Karachi: February 26, 2026

04 HALF YEARLY REPORT 2025

ن ن یندمٹ آصصحیف

ی ئ ی ی ت ی ی ش

رپ یندمآ صصح یف ید�ی ب یک ینپمکن ۔(ےپور 0.0ش 7 یفنم :202ٹ 4 ربمسد( ےہ ےپور 3.03 یندمآ صصح یف ید�ی ب دعب ےک fن ی لی ےک تئ دم ۔ےھت�ادالا�ب ب او ز�یرنڈرآ �ب رونک یئوکسپ�ےک ینپمک�2025 ربمسد 31 ہکنک،ےہ�sایئوکاک نش�ی اڈ

ہsنن ئئ اجاکلبقتسم

یشاعم ہدوجوم ۔ےہ ےئوہ کی زوکرم ہجوت رپ ےنانب رتہب وک ںگی دنز ےئوہ ےتھکر را)ت sب ومن یتمی �ن روا ےناھٹsب وک یگدوجومن یک کٹ ی رام ینپن ا لرس

۔ےہ دامتعاsپ ُ رپ حت ی الص یک ےناھکد یگدرکراک لقتسم روا ےنرک ہلباقم اک تالاح نا ھتاس ےک کچل ینپمک ،دوجوب� ےک ں�ب ��لی��پ یسسی یئ�ی ارغج روا

ت ی ی ن ی ی ن ی ٹ ی ب ی ن �کی�ب� ب ن پ ٹ ی ی

ت ئ ش �

گرڈ۔ےہ�ی انبرتہبوکلسلستیرب�وراکےنہلدابمحرشمکحتسمروا،دوسحرشمک،�ن نش �ی�ل�ی ریڈاکں�ت �می�قیکت�ی ودایرورض�ی ن لومشب،تفر�ش ی پ لی اح ۔یگےد�وقت�موکتد�یکلرسمیجول���یروظنملاحیک� ا'Denosumab'ےس�اجیکناتسک�فآیٹراھتایل�ر

ن ن ت ئ ٹ �ی ٹ ٹ ٹ Cن ش IS GCC ی�ل� ن ن

ن

یئن ےس�ب اج یک ماکح ےکتحصیئاقالع ےسج ،ےہ یہر اھsب راتفر ینپامی ںکی رام روا ( ( کلامم ی�ب رپ روطصاخ،تادمآsب ینپمک ۔ےہیہررک�ی وکتامادقاےکیرا�ی پ�روا�ی دبتل�ی�ب� ڈلی ےکےناھsب وکیگدرکراک�ی رپآلرس،یہھتاس۔ےہلصاح�ت ی امحیکں�ی روظنم��پ�کی�فمی

لی ےک ےنرک ا�ی پ ردق را�ی ئ پ� لی ےک زرڈلوہ کی �ٹ�سا مامت لرس ۔�ی ہ ےترک ادا �ی رکش اک نا رپ نواعت روا دامتعا لسلسم ےک زرڈلوہ �ئ ی ش ےنپا مہ ۔ےہمزعsپ ُ

ےس�ب ن اج یکساروالی ےکڈروب

الاو لپپ� قاٹزر�یی ئ بب ز ن ٹ ن دمحا 5ن ہہ اط

�ی sاڈ

�ی آ �ی Ćی ا�ی پ

2026 یرو)ن 26 :یچارک

DECEMBER 2025 05

ناگتف�یی صصحےئاsبب ٹروپرز�ییٹٹ sئئ اڈ

ش پ ی ن

ےہٹ ری رکئ سوسحمہ یشوخ ےئوہت ےترک �ی تامولعم یتلی ام یروبع مکحتسم � یک ینپمک لی ےک لاسٹ نفصنٹ ےلاو ےنشن وہنی متخ وک 2025 ربمسد 31 مہہ

ز�sاڈ۔�ی ےئگکی رlی قباطمےکن ن ش ںوضاقتےک'گنٹٹ روپر یتلی ام یروبع-ن (ن IAک ٹ Sٹ ( 34 ڈرسی ن اش گنٹنکی�س ؤاکا �رٹنا'ٹےرناوشن وگکیتلی ام �ی ۔�ی

ت

قباطم ےک XII بب� ےک 2019 ���ی �ل�ی ر (سننروگ �ی روپراک فآ ڈوک( �ی ��پ�م ���ل روا 227 �� ےک 2017 �ی ا �ی ��پ�م ٹروپر �ی یک ۔ےہیئگیکرlی

ن ت ٹ ں�یی�کلھبب�یلام

ن ی پ ت ب ی ت ن

ی ی ٹ

ن ی ی ��ی� ی �می�ق ب ی

۔ےہ یترک 5ہ اظ ہفاضا �ی 34 می ےلباقم ےک تدم یسا یک لاس ہتشزگ وج ،یئگ چنہپ � ےپور بنرا 17.58 رک ھsب یندمآ یک ینپمکن عفانم یعومجم ۔ےہ رپ دمآردلمع یتراجت رتہبن روا یرتہب یک � یئالپس ،یبسی د رتہب یک تاعونصم د�ی یک ومن ں�ی امن سا م �و) م تدم یسا لاس ہتشزگ وج ،گی وہ � 56.3 رک ھsب نجرام اک عفانمٹ یعومجم ہکبج ،اہرت ےپور برا 9.ن 90 ھتاس ےک ےفاضن ا ں�ی امن ۔یئوہ نکمم ےس ہجو یک سب انت �ی رتہب ےک تاعونصم روا ں�دبت کب رٹسا م ں� رپ روط ید�ی یرتہب �ی ۔اھت � 49.2

ٹ ی ت SPL ٹ ٹ ٹ یٹ پ ی ی ب ہ ن ن ی 520 ئ ی ت

ن ٹ ن ٹ ٹ ن ٹ

می ےلباقم ےک ےپور نلمن ی ن 1,369 ےک تدم یسا یک لاس ہتشزگ ،ےھتن ھجوب اٹsب �ی ا رپ عفانم ےک ینپمک می راودا ہقباس وج ، تاجاsن ا یتلی ام یتدم �وط دعب ےک �و) یک ( ( 'مل ناتسک� لرس' ہجو ید� یک یمک سا ۔�ی ےئگ ہر ےپور لم رک وہ مک رپ روط ں�امن ٹ�ی رک VIS یساکع یک یرتہب سا می �تی �ی �کی�ل روا �ب رلی ۔ےہ یمک می دوس حرش ید�ی ب نارود ےک ےصرع سا روا �ی ادا یک ںوض) ۔ےہ یتوہ یھب ےس ےنھکر را)sب ھتاس ےک کل ٹؤآ مکحتسمےک 'AA-/A1' �ی ر یک ینپمک ےس �ب اج یک ملی ینپمک �ی ر

ےلھچپ ےن سج ،اھت لم�ش یھب ناصقن یتقو �ی اک ےپور لمن ی 927 قلعتم ےس یراک �ی امرس یک ینپمک می SPL می تش دم یسا یک لاس ہتشزگ

ٹ ۔اھت الاڈ sا یفنم رپ عفانم ےک لاس

می تدم یسا لاس ہتشزگ ہکبج ،کی ڈر�ی ر عفانم fی زا دعب اک ےپور لمن ی 1,785 ےن ینپمک می لاس فصن ےلاو ےنوہ متخ وک ربمسد 31 ۔اھت اوہ ناصقن اک ےپور لمن ی 39

:ےہ اہر اج کی �ش ی پ ہصالخ اک جئاتن یتلی ام ےک ہام ھچ ےلاو ےنوہ متخ وک 2025 ربمسد 31 می �ی ذ

لاسفصنsی �ن پ ماتتخا

2024ربمسد31 ن ہ 2025ربمسد31

(می ںورا5 ےپور یناتسکپ�(

13,157,762 17,582,391 یندمآ یلاو ےنوہ لصاح ےس ںودہاعم ھتت اس ےک ت ںن وکہاگن

(6,687,389) (7,681,589)

گال یک �و)

6,470,373 9,900,802

ن عفانم یعومجمت

(3,394,108) (5,075,788) تاجاsا ےکن سی s

ن

(761,396) (870,304) تاجاsا یماظتنا

(28,101) (318,423) تاجاsا Ćی د 72,936 285,705 یندمآ Ćی د

ن ی

(927,463) - ناصقن رپ یراک �ی امرس می ےرادا نتحتش ام

1,432,241 3,921,992 عفانم ےست /رپآ

(1,368,831) (519,619)

ی ٹ گال یتن لی ام

63,410 3,402,373 عفی ٹ انم لبق ےس ی fٹ مکنا روا sن ی لی

(12,322) -

51,088 3,402,373

f یمتح روا f مکٹ زا مک - sی لی

fن ی زا لبق عفٹ انم

(89,822) (1,617,567)

ٹ تاجاsا ےک fی مکنا

(38,734) 1,784,806

06 HALF YEARLY REPORT 2025

fی زا دعب (ناصقن(/عفانم

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of The Searle Company Limited

Report on review of Unconsolidated Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of The Searle Company Limited as at December 31, 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, unconsolidated condensed interim statement of cash flows, and notes to and forming part of the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as the "unconsolidated condensed interim financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these unconsolidated condensed interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of unconsolidated condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of comprehensive income for the quarter ended December 31, 2025 and December 31, 2024 have not been reviewed by us.

The engagement partner on the audit resulting in this independent auditor's report is Syed Muhammad Hasnain.

A. F. Ferguson & Co. Chartered Accountants Karachi

Date: February 27, 2026

UDIN: RR20251007306cru2Os4

A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network

State Life Building No. 1-C, I.I. Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan

Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938/32424740; <https://www.pwc.com/pk>

KARACHI LAHORE ISLAMABAD

FINANCIAL POSITION

As at December 31, 2025

(Un-audited) (Audited)

December 31, June 30,

2025 2025

ASSETS Note (Rupees in '000)

Non-current assets

Property, plant and equipment 5

Right-of-use assets Investment properties - at cost Intangible assets

Deferred tax assets

Long-term investments - subsidiaries Long-term loans

7,632,409

40,770

2,923,493

12,131

1,214,703

9,666,718

61

Long-term deposits

Current assets

Inventories 6

Trade receivables 7

Loans and advances 8

Trade deposits and short-term prepayments

Other receivables 9

Short-term investment - at amortised cost Taxation - payments less provision

Tax refunds due from Government - sales tax

Cash and bank balances 10

Total assets

EQUITY AND LIABILITIES EQUITY

Share capital

Issued, subscribed and paid-up capital 11

Capital reserves

Share premium

Revaluation surplus on property, plant and equipment - net

Revenue reserves General reserve Unappropriated profit

LIABILITIES

Non-current liabilities

Long-term borrowings 12

Employee benefit obligations Lease liability

Current liabilities

Trade and other payables 13

Short-term borrowings 14

Contract liabilities Unpaid dividend Unclaimed dividend

Current portion of lease liability

Total liabilities

Contingencies and commitments 15

Total equity and liabilities

7,396

21,497,681

3,717,103

9,487,605

2,027,914

204,026

5,261,130

100,000

1,985,688

254,262

140,211

23,177,939

44,675,620

5,114,945

9,085,133

4,582,517

280,251

11,176,837

30,239,683

46,067

58,380

57,514

161,961

6,102,229

7,910,150

31,030

182,340

36,827

11,400

14,273,976

14,435,937

44,675,620

The annexed notes from 1 to 26 form an integral part of these unconsolidated condensed interim financial statements.

Quarter ended Half year ended December 31, December 31, December 31, December 31,

2025 2024 2025 2024

Note --------------------------(Rupees in '000)-------------------------

Revenue from contracts with customers 16

Cost of sales 17

Gross profit Distribution costs

Administrative expenses Other expenses

Other income 18

Impairment loss on investment in a subsidiary Profit from operations

Finance cost

Profit / (loss) before levies and income tax Levies - minimum tax and final tax

Profit / (loss) before income tax

Taxation 19

Profit / (loss) for the period Other comprehensive income

Total comprehensive income / (loss)

6,480,142

(3,070,646)

3,409,496

(1,865,227)

(421,429)

10,017

36,825

(927,463)

242,219

(627,642)

(385,423)

1,209

(384,214)

44,699

(339,515)

-(339,515)

13,157,762

(6,687,389)

6,470,373

(3,394,108)

(761,396)

(28,101)

72,936

(927,463)

1,432,241

(1,368,831)

63,410

(12,322)

51,088

(89,822)

(38,734)

-(38,734)

----------------------------------(Rupee)------------------------------------

Basic and diluted earnings per share /

(loss) per share (Rupees) 20

(Restated) (Restated)

1.58

(0.58)

3.03

(0.07)

The annexed notes from 1 to 26 form an integral part of these unconsolidated condensed interim financial statements.

CHANGES IN EQUITY

For the half year ended December 31, 2025 - Unaudited

Capital reserves Revenue reserves Reval-

Issued,

subscribed and paid-up capital

Share premium

uation

surplus on Property, plant and equipment

General reserve

Unappropriated profit

Total reserves

Total

--------------------------------------------Rupees '000--------------------------------------------

Balance as at July 01, 2024 (audited) 5,114,945 9,085,133 4,062,375 280,251 10,552,225 23,979,984 29,094,929

Total comprehensive income for the period ended December 31, 2024

Loss for the period

Other comprehensive income for the period

Transfer of incremental

- - - - (38,734) (38,734) (38,734)

depreciation - net of deferred tax - - (95,531) - 95,531 - -Balance as at December 31, 2024

The annexed notes from 1 to 26 form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the half year ended December 31, 2025 - Unaudited

The annexed notes from 1 to 26 form an integral part of these unconsolidated condensed interim financial statements.

1. THE COMPANY AND ITS OPERATIONS

   1. The Searle Company Limited (the Company) was incorporated in Pakistan as a private limited company in October 1965. In November 1993, the Company was converted into a public limited company under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). Its shares are quoted on the Pakistan Stock Exchange Limited (PSX). The Company is principally engaged in the manufacturing of pharmaceutical and other consumer products. The registered office of the Company is situated at One IBL Centre 2nd Floor, Plot No. 1, Block 7 & 8 Dehli Mercantile Muslim Cooperative Housing Society, Tipu Sultan Road off Shahrah-e-Faisal, Karachi.

      International Brands (Private) Limited is the Parent Company, which holds 52.33% (December 31, 2024: 50.25%) shareholding in the Company. This holding percentage includes 9,645,357 shares which are held in lieu of 5% withholding tax under section 236M and 307,801,776 shares which are held in lieu of 10% withholding tax under section 236Z of the Income Tax Ordinance, 2001. The shareholder has filed a petition against such provision and the case is currently pending before the Honorable High Court.

      Listed Company Unlisted Companies	Principal Effective place of %age of holding business December 31, June 30, 2025 2025 (Unaudited) (Audited) 74.19% 74.19% 100.00% 100.00%
      - Searle Laboratories (Private) Limited	100.00%	100.00%
      - Searle Biosciences (Private) Limited	100.00%	100.00%
      	100.00% 87.20%	100.00% 87.20%
      - Searle IV Solutions (Private) Limited	100.00%	100.00%
      - Stellar Ventures (Private) Limited	100.00%	100.00%
      - MyCart (Private) Limited **	50.00%	50.00%
      - IBL Frontier Markets (Private) Limited **	100.00%	100.00%
      - Prime Health (Private) Limited **	100.00%	100.00%

      • IBL HealthCare Limited

      • Searle Pharmaceuticals (Private) Limited

      • IBL Future Technologies (Private) Limited

      • Nextar Pharma (Private) Limited *

   2. Following are the subsidiary companies:

      }Pakistan

      * Nextar Pharma (Private) Limited a subsidiary of Searle Biosciences (Private) Limited and an indirect subsidiary of the Company.

      ** MyCart (Private) Limited, IBL Frontier Markets (Private) Limited and Prime Health (Private) Limited are subsidiaries of Stellar Ventures (Private) Limited and are indirect subsidiaries of the Company.

   3. These unconsolidated condensed interim financial statements are separate financial statements of the Company in which investments in subsidiaries have been accounted for at cost less accumulated impairment losses, if any.

2. BASIS OF PREPARATION

   1. Statement of compliance

      1. These unconsolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

         • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

         • Provisions of, directives and notifications issued under the Companies Act, 2017.

         Where the provisions of, directives and notifications issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of, directives and notifications issued under the Companies Act, 2017 have been followed.

      2. These unconsolidated condensed interim financial statements do not include all the information required for a full set of financial statements and should be read in conjunction with the audited annual unconsolidated financial statements of the Company as at and for the year ended June 30, 2025.

      3. Functional and presentation currency

         These unconsolidated condensed interim financial statements are presented in Pakistan Rupees which is the Company's functional and presentation currency. All financial information presented in Pakistani Rupees have been rounded off to the nearest thousand Rupees except where stated otherwise.

3. MATERIAL ACCOUNTING POLICIES INFORMATION

   1. The accounting policies and methods of computation adopted in the preparation of these unconsolidated condensed interim financial statements are the same as those applied in the preparation of the audited annual unconsolidated financial statements of the Company as at and for the year ended June 30, 2025.

   2. Changes in accounting standards, interpretations and pronouncements

      1. Standards and amendments to approved accounting standards that are effective

         There are certain standards, amendments and interpretations to the accounting and reporting standards which are mandatory for the Company's annual accounting period which began on July 1, 2025. However, these do not have any significant impact on the Company's financial reporting.

      2. Standards and amendments to approved accounting and reporting standards that are not yet effective

      There is a new standard and amendments that will be applicable to the Company for its annual periods beginning on or after January 1, 2026. The new standard refers to IFRS 18 Presentation and Disclosure in the Financial Statements with an applicability date of January 1, 2027. The overall amendments include those made to IFRS 7 and IFRS 9 which clarify the date of recognition and derecognition of a financial asset or financial liability and are applicable effective January 1, 2026. The Company's management at present is in the process of assessing the full impacts of the new standard and the amendments to IFRS 7 and IFRS 9 and expects to complete the assessment shortly.

4. ACCOUNTING ESTIMATES AND JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

   1. The preparation of the unconsolidated condensed interim financial statements in conformity with accounting and reporting standards, as applicable in Pakistan, requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

   2. The significant judgements made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited annual unconsolidated financial statements as at and for the year ended June 30, 2025.

   3. The Company's financial risk management objectives and policies are consistent with those disclosed in the audited annual unconsolidated financial statements for the year ended June 30, 2025.

5.2 Net book value of disposals during the period is Rs. 30.37 million (December 31, 2024: Nil).

These advances include amounts given to related parties for financial assistance and are settled in the normal course of business. These are as follows:

(Unaudited) (Audited)

December 31, June 30,

2025 2025

(Rupees in '000)

• IBL Logistics (Private) Limited

• Nextar Pharma (Private) Limited

• Searle Biosciences (Private) Limited

• Searle IV Solutions (Private) Limited

• United Retails (Private) Limited

• Universal Retails (Private) Limited

• Stellar Ventures (Private) Limited

-

-786,394

499,345

-

-205,190

1,490,929

Receivables from related parties

Due from Parent Company:

International Brands (Private) Limited against:

• Expenses

• Rental income

• Group relief

  Due from subsidiary companies:

  IBL HealthCare Limited against:

• Expenses

• Royalty

• Rental income

  Searle Biosciences (Private) Limited against:

• Facility management fee

• Expenses

  Nextar Pharma (Private) Limited against:

• Expenses

  Searle IV Solutions (Private) Limited against:

• Expenses

  IBL Frontier Markets (Private) Limited against:

• Expenses

  Due from associated companies:

  IBL Operations (Private) Limited against:

• Expenses

• Rental income

  IBL Unisys (Private) Limited against:

• Rental income

• Expenses

  Universal Ventures (Private) Limited against:

• Sale of a subsidiary

  Due from other related parties:

  United Retail (Private) Limited against:

• Rental income

• Expenses

  Universal Retail (Private) Limited against:

• Rental income

• Expenses

Surplus arising under retirement benefit fund Others

(Rupees in '000)

213,798

24,133

58,040

295,971

562,289

7,400

67,786

35,624

140,631

103,820

251,441

5,250

4,042,359

5,261,130

(Unaudited) (Audited)

December 31, June 30,

1. CASH AND BANK BALANCES 2025 2025

   (Rupees in '000)

   Cash in hand:

   • local currency

   • foreign currency Cheques in hand

     With banks in:

     Islamic

   • current accounts - local currency

     Conventional

   • current accounts - local currency

   • current accounts - foreign currency

2. SHARE CAPITAL

   Authorised share capital

   (Unaudited) (Audited)

   December 31, June 30,

   2025 2025

   (Number of shares)

   210

   290 3,729

   4,019 607,400 3,949

   190,248 16,294

   206,542

   821,910

   4,334

   4,544

   -

   3,471

   119,622

   12,574

132,196

140,211

700,000,000 700,000,000 Ordinary shares of Rs. 10 each 7,000,000 7,000,000

Issued, subscribed and paid up capital

(Number of shares)

1,615,969

1,615,969

240

240

4,265,978

3,498,736

5,882,187 5,114,945

161,596,926 Shares allotted for consideration paid in cash

24,000 Shares allotted for consideration other than cash

349,873,498 Shares allotted as bonus shares

511,494,424

(Unaudited) (Audited)

December 31, June 30,

2025 2025

1. LONG-TERM BORROWINGS (Rupees in '000)

   Financing under:

   - Diminishing Musharakah

   96,554

   46,067

   1. During the year, the Company obtained diminishing musharakah financing of Rs. 75 million from First Habib Modaraba for acquisition of two Mercedes-Benz vehicles each amounting to Rs. 36.51 million and Rs. 37.30 million. The facilities carry profit at 3-month KIBOR plus 1% (with a minimum of 5%) and are repayable over a five-years term through a monthly buy-out of Musharakah units.

These arrangements are secured through hypothecation over the financed vehicles, comprehensive takaful assigned to the Modaraba, and retention of vehicle title in the name of First Habib Modaraba until full settlement.

The facility is secured by a joint pari passu hypothecation charge over current and fixed assets amounting to Rs. 541.67 million, and an equitable mortgage charge of Rs. 125 million over property located at Plot F-319, S.I.T.E., Karachi, aggregating to total security of Rs. 666.67 million. Until completion of charge upgradation, utilization of the facility remains restricted to 75% of the approved limit.

1. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There has been no significant change in the status of contingencies in the current period as reported in the note 30 of the annual audited unconsolidated financial statements of the Company for the year ended June 30, 2025 except as disclosed below in notes 15.1.1 and 15.1.2.

      1. As disclosed in note 39.2.2 to the annual financial statements for the year ended June 30, 2025, the Company had been contesting the validity and applicability of levy under section 4B before Sindh High Court. However, the Federal Constitutional Court of Pakistan, through its judgment dated 27 January 2026, has upheld section 4B as intra vires, confirming that the levy is constitutionally valid and continues to apply.

         Consequently, in view of the above judgement the Company has recorded a liability amounting to Rs. 18.38 million as disclosed in these unconsolidated condensed interim financial statements - refer note 19.1.

         However the Company has recorded a liability computed on the basis of the Company's filed income tax returns, whereas the tax authorities had issued notices for recoverability of super tax for tax years 2015 to 2019 amounting to Rs. 403.25 million on the basis of amended taxable income. However the Company has not provided for the full amount on the basis of the following contentions:

         1. Taxability of exempt intercorporate dividend income in light of stay obtained from the Honourable High Court of Sindh refer - note 30.1.4 annual financial statements for the year ended June 30, 2025.

         2. Erroneous additions made in the notices received.

         3. Status of the pending appeal of the Company before the appellate authorities.

            The Company expects a favorable outcome based on the advice of its legal and tax consultant.

      2. As disclosed in note 39.2.3 of the annual financial statements for the year ended June 30, 2025, the Company had challenged the levy of super tax under section 4C. However, the Federal Constitutional Court of Pakistan, through its judgment dated 27 January 2026, has upheld section 4C as intra vires, confirming that the levy is constitutionally valid and continues to apply. All petitions filed by the Company stand dismissed. Consequently, in view of the above judgement the Company has recorded a liability amounting to Rs. 254.73 million as disclosed in these unconsolidated condensed interim financial statements - refer note 19.1.

         (Unaudited) (Audited)

         December 31, June 30,

         2025 2025

   2. Commitments (Rupees in '000)

      1. Commitments in respect of capital expenditures Property, plant and equipment

         6,766

         15,446

      2. Post-dated cheques issued in favour of Collector of Customs for import of inventory at December 31, 2025 amounted to Rs. 294.58 million (June 30, 2025: Rs. 197.65 million).

      3. The facility for opening letters of credit and guarantees as at December 31, 2025 amounted to

         (Unaudited)

         December 31, December 31,

         2025 2024

2. REVENUE FROM CONTRACTS WITH CUSTOMERS (Rupees in '000)

   Gross sales

   Local sale of goods	17,277,316		13,270,677
   Export sales	1,764,844		1,338,387
   	19,042,160		14,609,064
   Toll manufacturing	8,541		2,408
   	19,050,701		14,611,472
   Sales tax	(203,266)		(126,805)
   Less:	18,847,435		14,484,667
   Discounts, rebates and allowances	1,252,487		1,088,756
   Sales return	12,557		238,149
   	1,265,044		1,326,905
   	17,582,391		13,157,762

   1. Consequent to order 4480/2018 dated August 3, 2018 issued by the Honourable Supreme Court of Pakistan, the Drug Regulatory Authority of Pakistan (DRAP) fixed maximum retail prices of drugs vide notification S.R.O 1610/2018 dated December 31, 2018. Subsequently, DRAP vide notification S.R.O 34(1)/2019 dated January 10, 2019 increased the maximum retail prices of drugs by nine percent over and above the maximum retail prices as determined under the hardship category during the year 2018, and fifteen percent over and above existing maximum retail prices determined under Drug Pricing Policy, 2018 for drugs other than those specified under the hardship category.

      The Honorable High Court of Sindh vide order dated January 22, 2019 disposed off all the legal cases filed by the Company against DRAP. As mandated under the orders dated August 3, 2018 and November 14, 2018 passed by the Honourable Supreme Court of Pakistan in Human Rights Case No. 2858 of 2006, the Company may file an appeal before the Appellate Board of DRAP under Section 9 of the Drugs Act, 1976, if dissatisfied with the prices fixed by DRAP.

      Consequently, pursuant to the above, the Company challenged the prices of four of its products namely, Peditral, Gravinate, Metodine and Hydrylline before the Appellate Board of DRAP. The Appellate Board under its orders dated June 18, 2019, June 20 ,2019 and June 25, 2019 rejected the said application of the Company. The Company challenged the said orders in the Honourable High Court of Sindh and an interim order has been passed restricting DRAP from taking any coercive action against the Company.

      During the year 2022, the Company received a notice from DRAP which directed the Company having generic brand name, named Co- Extor, to lower its prices by 15% below those of corresponding originator brands, vide its letter dated May 05, 2021, in respect of the sale of its product "Co-Extor" at prices higher than those approved by DRAP. The Company has challenged the said order and obtained a stay order dated May 20, 2021 from the Honourable High Court of Sindh, restricting DRAP from taking any coercive action against the Company.

      During the period, the Company has received an annual price adjustment on all of its essential products at a rate of 3.14% based on CPI 2025.

      Exposure of the Company due to abovementioned litigations amounted to Rs. 4.32 billion (June 30, 2025: Rs.4.14 billion).

3. COST OF SALES

   These include inventory written-off during the period amounting to Rs. 15.8 million (December 31, 2024: Rs. 4 million).

   (Unaudited)

   December 31, December 31,

   2025 2024

4. OTHER INCOME (Rupees in '000)

   Income from financial assets - others

   Return on Term Finance Certificates

   Unwinding of deferred consideration and interest on delayed payments

   Income from non - financial assets

   Rental income from investment properties

   Gain on disposal of property, plant and equipment Income from architectural & interior designing Scrap sales

5. TAXATION

   Current

   • For the year

   • Prior year charge - note 19.1 Deferred tax

   9,406

   -9,406

   47,339

   35

   -16,156

63,530

72,936

395,923

-(306,101)

89,822

1. 1. This represents the super tax liability in respect of the levies imposed under sections 4C and 4B of the Income Tax Ordinance, 2001. The Company had previously contested the validity and applicability of section 4B and 4C before the Honorable Supreme Court of Pakistan. However, the Federal Constitutional Court of Pakistan, through its judgment dated January 27, 2026, has upheld sections 4B and 4C as intra vires, thereby confirming that these levies are constitutionally valid and continue to apply.

      In view of the above judgment, the Company has recognised a provision of Rs. 254.73 million in respect of super tax under section 4C, computed at the applicable rate of 10% for tax years 2022 to 2025. Further the Company has also recognised a provision of Rs. 18.38 million for super tax under section 4B - refer note 15.

      (Unaudited) December 31, December 31,

      2025 2024

2. BASIC AND DILUTED EARNINGS PER SHARE / (Rupees in '000)

   (LOSS) PER SHARE

   Profit / (loss) for the period

   Weighted average number of outstanding shares at the end of the period (in thousand)

   Basic and diluted earnings per share / (loss) per share (Rupees)

3. CASH GENERATED FROM OPERATIONS

   Profit before tax

   Adjustments for non-cash charges and other items

   Depreciation of property, plant and equipment Depreciation of right-of-use asset Depreciation of investment properties

   Loss / (gain) on disposal of property, plant and equipment Loss on Disposal of short term investment

   Amortisation of intangible assets Amortisation of transaction cost Provision for employee benefit obligation Finance cost

   Inventory written off Interest on lease liability

   Impairment loss on investment in a subsidiary Workers Profit Participation Fund and Workers Welfare Fund

   Unrealised exchange gain

   Profit before working capital changes

   Effect on cash flows due to working capital changes

   (Increase) / decrease in current assets Inventories

   Trade receivables Loans and advances

   Trade deposits and short-term prepayments Other receivables

   Refund due from Government - Sales tax

   Increase in current liabilities Trade and other payables

   Cash flow generated from operations

   (38,734)

   1,784,806
   588,219
   3.03
   3,402,373 326,640 4,830 47,155 12,723 9,394 6,109 -2,700 501,751 15,796 4,982 - 259,322 (7,490)
   4,586,285
   (1,326,489) (1,681,066) (1,267,945) (76,416) 708,148 44,780
   (3,598,988) 1,185,012
   2,172,309

   588,219

   Restated

   (0.07)

   63,410

   260,107

   4,830

   51,891

   (35)

   -7,112

   18,424

   2,700

   1,362,719

   -6,112

   927,463

   -

   -2,704,733

   (275,328)

   66,089

   (305,645)

   (23,362)

   (181,857)

   28,931

(691,172)

1,022,853

3,036,414

(Unaudited) December 31, December 31,

2025 2024

1. CASH AND CASH EQUIVALENTS (Rupees in '000)

   Cash and bank balances - note 10 Short-term borrowings - note 14

   - Running finance under markup arrangments

   719,640

   821,910 (1,296,923)

   (475,013)

   (1,449,316)

   (729,676)

   1. Short-term borrowings other than running finance have been reclassified as financing activities in the statement of cash flows which were previously included as cash and cash equivalents.

2. SEGMENT INFORMATION

   Based on an internal management reporting structure for the period, no reportable segments were identified that were of continuing significance for decision making.

3. DISCLOSURES RELATING TO SHARIAH COMPLIANCE (Unaudited) (Audited)

   December 31, June 30,

   2025 2025

   Disclosures in relation to the statement (Rupees in '000)

   of financial position - Liability

   Short-term financing as per Islamic mode	5,497,865	6,114,944
   Long-term financing as per Islamic mode	96,554	46,067
   Mark-up accrued on conventional loan	48,204	48,258
   Mark-up accrued on Islamic loan	161,448	171,347
   Disclosures in relation to the statement of financial position - Assets
   Shariah-compliant long-term investments - subsidiaries	9,666,718	9,666,718
   Shariah-compliant bank balances - note 10	3,949	3,471
   Disclosures required in relation to the statement of profit or loss and other comprehensive income
   Revenue earned from a Shariah
   compliant business segment - note 16	17,582,391	13,157,762
   Exchange (gain) / loss	(67)	1,410
   Profit paid on islamic mode of financing	386,223	1,211,057
   Break-up of other income excluding profits in bank deposits and TDRs
   Shariah compliant income:
   Scrap sales - note 18	32,457	16,156
   Rental income from investment property - note 18	54,821	47,339
   Loss / (gain) on disposal of property, plant and equipment	12,723	(35)
   Income from architectural & interior designing - note 18	3,370	-
   Shariah non-compliant income
   Interest Income from Term Finance Certificates - note 18	-	9,406
   Unwinding of deferred consideration and
   interest on delayed payments - note 18	195,057	-

   1. Relationship with shariah compliant financial institutions

      Islamic Banks

      The Company has facilities with Al-Baraka Bank (Pakistan) Limited for Istisna finance and letter of credit amounting to Rs. 400 million and Rs. 800 million respectively.

      The Company has facilities with Meezan Bank Limited for Running Musharakah and Letter of Credit amounting to Rs. 700 million and Rs. 400 million respectively.

      The Company has facilities with Askari Bank Limited for Running Musharakah and letter of credit amounting to Rs. 375 million and Rs. 250 million respectively.

      The Company has facilities with Bank Alfalah Limited for Running Musharakah and letter of credit amounting to Rs. 500 million and Rs. 800 million respectively.

      The Company has facilities with Soneri Bank Limited for Running Musharakah and letter of credit amounting to Rs. 300 million and Rs. 200 million respectively.

      The Company has facilities with Faysal Bank Limited for Running Musharakah, letter of credit and letter of guarantees amounting to Rs. 100 million, Rs. 650 million and Rs. 50 million respectively.

      The Company has facilities with Bank AL Habib Limited for Istisna finance and letter of credit amounting to Rs. 250 million and Rs. 250 million respectively.

      The Company has facilities with Dubai Islamic Bank Limited for Running Musharakah, letter of credit and letter of guarantees amounting to Rs. 700 million, Rs. 210 million and Rs. 90 million respectively.

      The Company has facilities with Habib Bank Limited for Running Musharakah, Islamic Export Refinance Scheme (IERS), letter of credit and letter of guarantees amounting to Rs. 850 million, Rs. 350 million, Rs. 500 million and Rs. 15 million respectively.

      Window Takaful Operators

      The Company has Takaful relationship with Jubilee General Insurance Company Limited.

4. DISCLOSURE OF TRANSACTIONS BETWEEN THE COMPANY AND RELATED PARTIES:

   The related parties include associated companies, staff retirement funds, directors, key management personnel and close family members of directors and key management personnel. The Company in the normal course of business carries out transactions with various related parties.

   The Company enters into transactions with related parties on the basis of mutually agreed terms. Significant transactions with related parties are as follows:

   (Unaudited)

   		December 31,	December 31,
   Nature of relationship	Nature of transactions	2025	2024

   (Rupees in '000)

   Parent company	- Corporate service charges	36,300	55,260
   	- Rent income	10,917	9,743
   	- Income from provision of amenities	7,910	7,520
   	- Advance against coporate charges	160,000	-
   Subsidiaries	- Revenue	188,453	418,011
   	- Purchase of consumables	688,593	659,752
   	- Product qualification testing services	6,295	-
   	- Royalty	25,000	26,755
   	- Advance against financial assistance	442,611	108,750
   	- Rent income	2,687	7,830
   	- Income from provision of amenities	1,839	1,454
   	- Reimbursement of expenses	77,537	94,873
   	- Material loan	-	37,221
   Staff retirement	- Contributions to provident fund	137,109	117,822
   benefits	- Benefits paid	62,083	93,562
   Associated	- Revenue	13,278,279	9,936,579
   companies	- Salaries and wages	7,274	20,826
   	- Purchases of property, plant and
   	equipment	3,543	-
   	- IT Services	34,893	-
   	- Carriage and duties	40,483	207,278
   	- Discounts claimed	430,096	254,442
   	- Rent expense	55,943	48,308
   	- Rent income	31,014	24,125
   	- Stock claims	270,048	278,522
   	- Internet services	3,977	29,397
   	- Income from provision of amenities	77,017	78,905
   	- Donations	10,607	19,152
   	- Incentive of field force	11,289	-

   (Unaudited)
   Nature of relationship	Nature of transactions	December 31, 2025	December 31, 2024
   (Rupees in '000)
   	- Repair & maintenance	153	1,208
   	- Reimbursement of expenses	532	-
   	- Merchandise expense	24,282	8,410
   	- Advances to associates	22,758	-
   	- Others	6,072	11,510
   Key management	- Salaries and other
   employees	employee benefits	219,497	214,413
   compensation	- Contributions to a provident fund	17,203	13,298

   1. The status of outstanding balances with related parties as at reporting date is included in the respective notes to the unconsolidated condensed interim financial statements.

5. DATE OF AUTHORISATION FOR ISSUE

Chief Executive

These unconsolidated condensed interim financial statements were approved and authorised for issue by the Board of Directors of the Company on February 26, 2026.

Director Chief Financial Officer

28

31

32

33

34

35

36

Consolidated Directors' Report

Consolidated

Directors' Report (Urdu)

Consolidated Statement of Financial Position

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Consolidated Directors' Report to the Members

We are pleased to present the consolidated interim financial information of the group for the half year ended December 31, 2025. These financial statements have been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 -'Interim Financial Reporting'. The directors' report is prepared in accordance with section 227 of the Companies Act, 2017 and Chapter XII of the Listed Companies (Code of Corporate Governance) Regulations, 2019.

Financial highlights

Revenue of the group increased to Rs. 19.65 billion, reflecting a 31% increase compared to the same period last year. The significant growth in sales was underpinned by improved product availability, optimisation of the supply chain and enhanced commercial execution. Gross profit increased substantially to Rs. 10.75 billion, with the gross profit margin improving to 54.7%, compared to 48.0% in the corresponding period last year. This improvement was primarily driven by strategic price adjustments and a favorable shift in the product mix.

Finance costs declined substantially to Rs. 541 million, down from Rs. 1,402 million in the corresponding period last year. This reduction was largely attributable to lower interest rates and the settlement of long-term borrowings following the divestment of SPL.

As a result, the group recorded a profit after tax of Rs. 1,806 million, compared to Rs. 69 million in the corresponding quarter of the previous year.

Below is a summary of the financial results for the half year ended December 31, 2025:

Half year ended

December 31, December 31,

2025 2024

(Rupees in thousand)

28 HALF YEARLY REPORT 2025