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Square Pharma, Renata top net profit chart

Mohammad Mufazzal | Published: December 15, 2019 10:44:49 | Updated: December 18, 2019 10:39:26


The listed top pharmaceutical companies have continued their upward trend in generating profits amid increased demand of drugs due to growing illnesses among teeming millions caused by various diseases, experts said.

They said the sector saw 10-11 per cent growth for the FY 2018-19 and the growth for July-September, 2019 is also praiseworthy.

Of the listed companies, Square Pharmaceuticals posted the highest net profit for the fiscal year (FY) 2018-19 due to its country-wide network and quality of products.

The net profit of other top manufacturers such as Beximco Pharmaceuticals, Renta, and The ACME Laboratories also rose for FY 2018-19 riding on increased domestic sales and exports.

Square Pharmaceuticals reported its net profit of above Tk 10.56 billion for the year ended on June 30, 2019 against Tk 8.21 billion reported for same period of the previous year.

Its consolidated EPS rose to Tk 16.03 for the FY 2018-19 from Tk 14.69 of the previous FY.

According to the company's annual report, its domestic sales rose 11.12 per cent to Tk 49.38 billion for the FY 2018-19, while the export sales advanced 1.49 per cent to Tk 1.49 billion came from 42 countries.

The dividend payout (cash) of the Square Pharmaceuticals rose 24.83 per cent for the FY 2018-19 compared to the previous FY.

The company recommended 42 per cent cash and 7.0 per cent stock dividend for the year ended on June 30, 2019.

Khandaker Habibuzzaman, company secretary of Square Pharmaceuticals, said the company's wide network and the management's goodwill play a vital role in accelerating the net profit.

Like other few large cap companies, the price movement of the shares of Square Pharmaceuticals has an impact on the index of the stock exchanges. The company's market capitalisation is around Tk 150 billion on the Dhaka Stock Exchange (DSE).

Amid the declining trend of the market, the company's share price declined 21.17 per cent or Tk 50.30 in last one month. Its share price closed at Tk 190 each on Thursday on the DSE.

Md. Moniruzzaman, managing director at IDLC Investments, said most of the listed pharmaceutical companies posted growth ranging between 10 per cent and 15 per cent.

"The pharma companies are performing better. The growth of Renata is really impressive as it witnessed 23 per cent growth for July-September, 2019," Moniruzzaman said.

Renata secured the second position in net profit for the FY 2018-19. For this FY, the company's net profit stood at above Tk 3.82 billion from Tk 3.19 billion reported in the previous year.

The company posted its turnover of above Tk 25.43 billion for the FY 2018-19 against Tk 21.33 billion reported for the previous FY.

The company's EPS rose 19.57 per cent to close at Tk 47.47 for the FY 2018-19. For this FY, the company recommended 10 per cent cash and 10 per cent stock dividend.

The company's return to shareholders' fund was 20.91 per cent for the FY 2018-19 from 21.13 per cent reported for the previous FY.

Beximco Pharmaceuticals witnessed 28.80 per cent growth in sales to close at above Tk 22.81 billion for the FY 2018-19. The company's export rose to Tk 2.50 billion for the FY 2018-19 with a rise of 70 per cent compared to previous FY.

It reported the third highest net profit worth Tk 3.04 billion with 20 per cent growth for the FY 2018-19.

Foreign shareholders have 36.73 per cent shares of Beximco Pharmaceuticals as of November 30, 2019. The company was listed on the stock exchanges in 1986.

The share price of Beximco Pharmaceuticals closed at Tk 76.20 each on Wednesday on the DSE.

Of other drug makers, the revenue reported by AMCE Laboratories rose 10.09 per cent to close at Tk 16.31 billion for the FY 2018-19 from Tk 14.81 billion reported for the previous FY.

The company's net profit stood at above Tk 1.44 billion for the FY 2018-19 against Tk 1.42 billion reported for the previous FY.

The EPS of ACME Laboratories was Tk 6.81 for the FY 2018-19 against Tk 6.74 reported for the previous FY.

Of other pharmaceuticals companies, Beacon Pharmaceuticals posted a net profit of Tk 117.70 million, The IBN SINA Tk 336.26 million, JMI Syringes and Medical Devices Tk 66.55 million, Orion Pharma Tk 212.61 million, and Silva Pharmaceuticals Tk 143.32 million for the FY 208-19.

The listed pharmaceuticals and chemicals companies account for around 17 per cent of the market cap on the premier bourse DSE.

mufazzal.fe@gmail.com

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