Square Pharma makes nearly Tk1,500cr profit in 9 months

Navigating the current global macroeconomic challenges, Square Pharmaceuticals, the country’s largest drug maker, posted a 5 per cent year-on-year surge in its net profit in the first nine months of the current fiscal year.

The listed company’s net profit stood at Tk 1,491 crore in the July-March period of the fiscal 2022-23, which was Tk 1,421 crore in the corresponding period last fiscal, a source at the company told The Business Post after its latest board meeting held yesterday.

Meanwhile, the leader in the country’s pharmaceutical industry witnessed a 10.1 rise in its revenue in the July-March period of FY23 on a year-on-year basis, as per its unaudited third quarterly financial report.

Despite several macroeconomic challenges on both global and domestic fronts, the pharma company displayed a handsome profit during the period, thanks to policy supports and the installation of tech-savvy machinery for the production of high-quality drugs.

Besides, the inclusion of anti-Covid drugs to its export basket also played a pioneer role to ramp up its earnings.

The company’s total revenue stood at Tk 4,814 crore at the end of the first three quarters of the current fiscal, which was up 10.10 per cent than that of the same period last fiscal.

The drug makers’ first nine-month earnings per share (EPS) rose to Tk 16.82 from Tk 16.03 for the same period last year.

However, Square Pharma posted a 6.3 per cent decline in its net profit to Tk 428 crore in the January-March quarter of the current fiscal year.

During the period, the drug maker made revenue of Tk 1,588 crore, against Tk 1,465 crore in the same period last year.

Its earnings per share for the third quarter of FY23 came down to Tk 4.83 from Tk 5.15 for the same quarter a year ago.

Square Pharma reported Tk 1062 crore in net profit in the July-December period of the fiscal year 2022-23 which was Tk 964 crore in the same period last fiscal.

The company’s earnings per share in H1 rose to Tk 11.99 from Tk 10.88 for the same period last year.

Square Pharma witnessed a 12.58 per cent year-on-year surge in export receipts in the fiscal year 2021–22. The export receipts of the publicly traded company stood at Tk 170 crore in the last fiscal against Tk 151 crore in the previous year.

“We have incorporated modern technologies including machine learning, artificial intelligence, and biotechnology to fortify our foothold both in domestic and global markets,” the company mentioned in its latest annual report.

Square Pharma’s medicines were now available at pharma stores in over 45 countries, according to the drug maker, while it was now trying to grab more slices in the global market.

The local pharmaceutical company already achieved approval for two ANDAs, while applications were filed to obtain approval for two other ANDAs.

The company’s consolidated revenue from operations surged by 13.81 per cent to Tk 6,641 crore in FY22 from Tk 5,835 crore in the previous year.

Moreover, its net profit grew by 13.98 per cent to Tk 1,818 crore in the last fiscal year from Tk 1,595 crore in the previous year.

The board of directors of Square Pharma paid a 100 per cent cash dividend for the year ended on June 2022, the highest in the company’s history.

In fiscal 2020-21, the pharma company disbursed a 60 per cent cash dividend to its shareholders.

Square Pharma is the biggest drug manufacturer in Bangladesh with a market share of 17.2 per cent in the country’s $3.2 billion worth of pharmaceuticals market.

Listed in 1995, the company’s shares closed at Tk 209.8 per share on the trading floor of the Dhaka Stock Exchange (DSE) on Sunday.

When Square Pharma displayed a handsome profit, the country’s another leading drug maker – Beximco Pharmaceuticals – suffered a year-on-year profit fall of 15.33 per cent in first nine months of the current fiscal.

The company’s profit after tax stood at Tk 356.58 crore in the July-March period, which was Tk 421.18 crore in the same period last fiscal.

Bangladesh’s pharmaceutical products were exported to 199 countries, generating over $180 million in turnover in FY22. The sector meets 97 per cent of domestic demand, worth around $3.5 billion.