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Renata showed a 20 per cent decline in profit to Tk 587.62 million for the third quarter to March of FY25 despite a significant revenue increase, owing to costlier raw materials, higher energy price and finance costs.
Revenue was up 16.07 per cent to Tk 10.71 billion in the January-March quarter, compared to the same quarter a year ago.
According to the latest financial statement for Q3 FY25, the drug maker's sales in the domestic market rose in the quarter, with export revenue cut by 19 per cent.
Renata achieved a more than 17 per cent year-on-year growth in revenue from their human medicine segment and nearly 28 per cent year-on-year growth in revenue from animal health products in January-March this year.
Despite this remarkable growth in revenue, which was driven by domestic demands, the company failed to secure a profit growth in the third quarter of FY25, as it spent nearly 27 per cent more on raw materials, compared to the same quarter of the previous year.
Also, it paid 18.3 per cent more to employees in the third quarter to March this year, compared to the corresponding period last year.
Expenditure on energy also climbed 6 per cent year-on-year and maintenance cost 26.3 per cent. Furthermore, the company witnessed its finance cost double for interest rate hikes as it had taken loans for business expansion.
Finance cost jumped to Tk 456 million in January-March this year from Tk 230 million in the same period last year.
The listed medicine producer's earnings per share stood at Tk 4.85 for the January-March quarter this year, down from Tk 6.33 for the same quarter the year before, according to its financial statement published on Wednesday.
Renata develops, manufactures, and markets both human and animal health products.
For the nine months through March this year, the drug maker reported a 35 per cent year-on-year fall in profit to Tk 1.68 billion, despite a 12.63 per cent year-on-year revenue growth to Tk 31.33 billion.
Meanwhile, the stock rose 0.02 per cent to Tk 490.90 per share on Wednesday on the Dhaka Stock Exchange.
Renata has offered some good news to its investors too. It said it had introduced 52 new products, invested Tk 3.04 billion in business expansion and that it is going to issue equity preference shares for reducing long-term interest burden.
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