Home ›› 27 Nov 2021 ›› Stock
Snapping a three-year positive growth, Square Pharmaceuticals Limited has witnessed an 8.48 per cent fall in its export earnings in the financial year 2020-21 due to worldwide restrictions inflicted by the Covid-19 pandemic.
The listed drug-maker’s earnings from medicine exports in the year dropped to Tk 151 crore from Tk 165 crore in the previous year, according to its annual report for FY21.
It is now doing its utmost to increase export earnings with the reopening of economies and eased up restrictions.
The pandemic badly affected the global export shipment process with extra lead time, which disrupted the overall international supply chain system.
As a result, Square Pharma’s exports dropped by 8.48 per cent in FY21, the pharmaceutical giant explained in its directors’ note.
The report also noted that the company failed to operate its factory in Kenya’s Nairobi in the last financial year owing to pandemic-triggered restrictions. This is also somewhat responsible for the negative exports growth.
However, most local pharma companies posted stellar growth in their export earnings in pandemic-marred FY21 compared to the previous year.
As a whole, Bangladesh earned $169 million in FY21 by exporting pharma items, up by 24.47 per cent than that of the previous year.
Bangladesh now ranks 71st among 178 countries in terms of pharmaceutical exports, said the report, adding that the local pharmaceutical industry accounts for 1.83 per cent of the country’s gross domestic product (GDP).
Square Pharma exports its medicines to over 45 countries and is trying to increase its export destinations.
“We are constantly working to boost our export sales within our current capacity and expect to grow significantly in the near future. The company is also working on the approval of several products for sale in the US market,” Square Pharma Chairman Samuel S Chowdhury was quoted as saying in the report.
Despite the sluggish export earnings, Square Pharma’s total turnover increased by 10.24 per cent to Tk 5,835 crore in FY21. It currently holds about 17.21 per cent of the market share.
The company set up a subsidiary – Square Pharmaceuticals, Kenya EPZ Ltd – in Nairobi of Kenya in 2017 but is yet to start production.
It expects the factory will soon go into production and help increase the company’s export earnings to a great extent.
The Square Pharma chairman said, “Our export-oriented set-up in Nairobi, though fully ready, could not be put into operation due to various limitations resulting from Covid-19. We hope once the situation improves, our thrust on exports will grow and shine like the Everest.”
Square Pharma holds 100 per cent stakes in SPL Kenya. Its paid-up capital is Tk 33.20 crore while Tk 6.54 crore has been advanced as share money deposit.
The report also stated that Square Pharma invested Tk 331 crore in the stock market and registered an unrealised capital gain of Tk 132 crore in FY21.
Meanwhile, the company invested Tk 9.8 crore in the year to improve its laboratory facilities in line with new inventions of process and production.
Square Pharma started its journey in 1964 as a partnership firm and later converted into a private limited company. It converted into a public limited company in 1991 and got listed with the capital market in 1995.
It pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products since then.
The market capitalisation of Square Pharma is around Tk 19,466 crore, which makes it the top-ranking company in the pharmaceuticals sector.
