Square Pharma declares record 110pc cash dividend for FY24

Square Pharmaceuticals, the largest drug maker in Bangladesh, posted more than 10 per cent growth in profit to Tk 20.92 billion in FY24, the highest annual profit in its history, driven by record sales.

Based on the record profit, the board declared the highest-ever cash dividend of 110 per cent for FY24.

The company’s board of directors made the recommendation at a meeting on Wednesday.

The leading drug maker of the country recorded Tk 70.10 billion in net sales, registering an increase of 12 per cent over the previous year.

The company’s persistent financial strength, distinct strategic approach, and the dedicated efforts of its employees also played an important role in reporting the profit growth.

The company’s consolidated net asset value per share stood at Tk 142.05 for FY24, compared to Tk 129.95 reported for the previous fiscal year.

The consolidated net operating cash flow per share (NOCFPS), however, increased to Tk 20.90 in FY24 from Tk 9.64 in the previous fiscal year.

The NOCFPS increased as the company improved its collection against sales during the reported year.

At Wednesday’s meeting, the company’s board of directors also approved a proposal to conduct BMRE (Balancing, Modernisation, Rehabilitation, and Expansion) and purchase capital machinery and land for future expansion at an aggregate cost of Tk 5 billion.

The company set its annual general meeting for December 18 and the record date for November 21.

The demand for its products has been increasing recently. That is why the company has already established several manufacturing contracts with different local companies like Aristopharma, Euro Pharma, Renata Oncology, and Apex Pharma to meet the increased demand for its existing products and introduce new products.

Though Square Pharma’s business mainly focuses on the local market, it has also expanded a foothold in the export market, supplying drugs to well-regulated markets such as the US and EU nations.

Square Pharma has already set up a plant in Kenya at an export processing zone in Nairobi in 2018 and began commercial production at the beginning of last year.

The market price of the blue-chip stock Square Pharma experienced an upward trend in July.

Its stock price rose 0.13 per cent to Tk 224.50 on Wednesday.

Square Pharma is the second-largest market-cap listed firm after Grameenphone, with a total market cap of Tk 199 billion as of Wednesday.

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