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Square Pharmaceuticals, the flagship company of Square Group, posted a nearly 26 per cent year-on-year growth in profit for the second quarter (Q2) of FY25, driven by increased sales.
The drug manufacturer's net profit stood at Tk 6.60 billion in October-December 2024, up from Tk 5.25 billion in the same quarter last year, according to its unaudited financial statements published on Thursday.
As a result, the company's earnings per share (EPS) stood at Tk 7.45 in the Q2 of FY25 as against Tk 5.92 in the same quarter of the previous year.
Sales revenue also saw a 12.6 per cent year-on-year increase, reaching Tk 19.97 billion for the December quarter.
The company's persistent financial strength, distinct strategic approach and the dedicated efforts of the employees played an important role in sustaining the profit growth despite challenging market conditions.
Meanwhile, the company's half-yearly profit also increased by 13 per cent to Tk 12.7 billion while revenue grew 6.1 per cent to Tk 37.72 billion.
Square Pharmaceuticals credited its sustained growth to several key factors, including a boost in domestic demand for healthcare products and rising exports, according to a company official.
The expanded distribution network and higher sales volume also played a significant role in driving the company's revenue growth, the official added.
Square Pharmaceuticals is a trusted name in the pharmaceuticals sector of Bangladesh and holding a strong leadership position in the domestic market since 1985.
The company is also strategically expanding its presence in the global markets and diversifying its operations through subsidiaries and associate companies.
"Square Pharma keeps growing every year in both local sales and export growth driven by faith in their products," said Akramul Alam, head of research at Royal Capital.
The company's ability to produce high-quality generic medicines at relatively lower costs has made it competitive in the global market, he added.
Square Pharma, which provides high-quality generic medicines, currently exports products to more than 40 countries, including those in the EU, Africa, Latin America, and the USA, while it is now trying to grab more slices in the global market.
The drug manufacturer invests heavily every year in research and development to improve existing products, reduce costs, and introduce new products.
In FY24, the company added 39 new products, according to the annual report.
The company is expanding its global footprint with entry into the Philippine market in 2023 by setting up a subsidiary -- Samson Pharma Inc, Philippines -- considering it as a potential export destination for it to fulfil the demand for medicines.
Incorporated in the Philippines, Samson Pharma Inc. is engaged in marketing and distribution of pharmaceuticals products.
Square, which began exporting medicines to Kenya in 2012, also set up a plant in Kenya export processing zone in Nairobi in 2018, in a pioneering move to manufacture medicine abroad.
Square Pharma also made Tk 20.93 billion in profits in FY'24, the highest annual profit in its history, driven by record sales.
Its annual net revenue grew 15.5 per cent to Tk 70.10 billion in FY'24.
Based on the record profit, the board declared the highest-ever cash dividend of 110 per cent cash for FY'24.
Square Pharma is considered one of the best performing blue-chip stocks, with an excellent reputation and second largest listed company in terms of market-cap of Tk 192 billion. Its stock closed at Tk 216.7 on Thursday, losing 0.23 per cent over the day before on the DSE.
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