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Square Pharmaceuticals, a leading drug maker of the country, has recommended the highest ever cash dividend of 105 per cent for the financial year 2023 as the company witnessed sustained profit growth driven by increased sales revenue.
The company's board of directors made the recommendation at a meeting on Sunday.
In the previous fiscal year, it distributed 100 per cent cash dividend.
The Square Pharma has reported a consolidated profit of Tk 18.98 billion for FY'23, registering an increase of 4.45 per cent from the previous fiscal year.
The company managed to continue its profit growth while some other drug makers have experienced a decline in their profits for FY'23 due to a surge in raw material costs and foreign exchange losses.
When asked about the factors contributing to Square Pharmaceuticals' continued profit growth, Managing Director Tapan Chowdhury explained that the company's advanced preparations played a pivotal role in ensuring uninterrupted operations, even in the face of macroeconomic uncertainties.
"Our company's persistent financial strength, distinct strategic approach and the dedicated efforts of the employees played an important role in sustaining the profit growth even in the face of adverse impacts resulting from the Ukriane-Russia war," Mr. Chowdhury said.
The company's net revenue rose 9 per cent to Tk 62.75 billion in FY'23.
According to company officials, a 15 per cent hike in the raw material costs had hit the profit growth. The company's energy costs also surged 38 per cent while the overhead cost rose 22 per cent in FY'23.
The company's consolidated net asset value per share stood at Tk 129.95 for FY'23, up from Tk 118.68 a yaer before.
The consolidated net operating cash flow per share (NOCFPS), however, declined to Tk 9.64 in FY'23 from Tk 14.52 in the previous fiscal year.
The company officials said the NOCFPS declined because of a 14 per cent rise in operating expenses.
At Sunday's meeting, the company's board of directors also approved a proposal to conduct BMRE (Balancing, Modernization, Rehabilitation and Expansion), and purchase capital machinery and lands for future expansion at an aggregate cost of Tk 4 billion.
The share price of the Square Pharmaceuticals remained stuck at the floor price of Tk 209.80 between November 29, 2022 and July 11, 2023 on Dhaka Stock Exchange (DSE).
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