Most pharma cos post higher EPS for Q1

GSK's earnings slump on unit closure

Babul Barman | Published: November 24, 2018 09:45:22 | Updated: December 04, 2018 12:42:54

Most of the listed pharmaceuticals companies saw a rise in the earnings for July-September period this year, thanks to higher expense on healthcare.

Of the 15 pharmaceuticals companies listed with Dhaka Stock Exchange (DSE), 11 companies posted healthy earnings per share (EPS), compared to the same period of the last year, while three companies' earnings have declined and one reported negative earnings.

The EPS is the portion of a company's profit allocated to each outstanding share of common stock, meaning it is an indicator of the company's profitability.

According to un-audited financial statements for the July-September quarter, 2018, the EPS of Advent Pharma, Central Pharmaceuticals, Silva Pharma, Beacon Pharma, The IBN Sina, Renata, Beximco Pharma, JMI Syringes, Pharma Aids, Ambee Pharma and Square Pharmaceuticals soared up to 154 per cent.

Of them, 10 logged double-digit EPS growth.

Industry insiders said population, purchasing power and life expectancy are increasing in the country. These are all positive factors for the pharmaceutical sector's growth.

The net income of our people is increasing, so they now spend more on healthcare, they added.

The EPS of Indo-Bangla Pharma, Orion Pharmaceuticals and Acme Pharmaceuticals declined in July-September, 2018, compared to the same period last year.

The GSK Bangladesh incurred a huge loss in the July-September quarter because of the closure of its pharmaceuticals unit in the country.

The British drug maker posted a negative EPS of Tk 48.64 for the July-September quarter against Tk 20.50 in the same period of the previous year.

The company said the shutting down of the pharmaceutical operations involves a significant amount of costs in terms of severance payment to employees, impairment of non-current assets and inventory write-off.

These expenses affected the financial result of the entity, leading to a significant deviation between earnings per share (EPS) and net asset value (NAV), it said.

Continued losses in recent years forced GlaxoSmithKline to close the medicine manufacturing unit in July after more than six decades of operation.

"The expenditure will not continue in the next quarter. Moreover, a good amount will be added to the earnings in future from the unit's assets," said a high official of the company.

GSK Bangladesh, however, would continue with its profitable consumer healthcare business that produces items like Horlicks, Sensodyne and Glaxose-D.

The Advent Pharma's EPS jumped to Tk 0.61 for July-September, 2018 as against Tk 0.24 for July-September, 2017, registering an increase of 154 per cent.

The EPS of Central Pharma rose 138 per cent to Tk 0.31 in July-September, 2018 which was 0.13 in the same quarter of 2017.

The recently listed Silva Pharma's EPS also surged 128 per cent to Tk 0.48 in July-September, 2018 against Tk 0.21 in same quarter last year.

The Beacon Pharma's EPS rose to Tk 0.16 for July-September, 2018 as against Tk 0.21 for July-September, 2017, registering an increase of 60 per cent.

The IBN Sina's EPS stood at Tk 2.68 for July-September, 2018 which was Tk 2.17 in July-September, 2017.

Renata's EPS went up to Tk 12.02 for July-September, 2018 as against Tk 10.10 for July-September, 2017, showing a rise of 19 per cent.

The EPS of Beximco Pharma increased 17 per cent to Tk 1.86 for July-September, 2018 as against Tk 1.59 for July-September, 2017.

Ambee Pharma's EPS stood at Tk 0.84 for July-September, 2018 as against Tk 0.75 for July-September, 2017, registering an increase of 12 per cent.

The EPS of Square Pharma rose to Tk 4.30 for July-September, 2018 as against Tk 4.08 for July-September, 2017.

On the other hand, EPS of recently listed Indo-Bangla Pharma fell to Tk 0.31 for July-September, 2018 as against Tk 0.36 for July-September, 2017.

Orion Pharma's EPS also declined 11 per cent to Tk 0.98 for July-September, 2018, which was Tk 1.10 for July-September, 2017.

The EPS of Acme Pharma fell to Tk 1.84 for July-September, 2018 as against Tk 1.99 for July-September, 2017.


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