Navigating the current global macroeconomic challenges, the country’s largest drug maker Square Pharmaceuticals posted a 5.92 per cent year-on-year surge in its net profit in the first six months [July-December period] of FY24.
During this period, Square Pharma, the flagship company of Square Group, registered Tk 1,124.90 crore in net profit, compared to Tk 1,062.85 crore in the same period previous year.
On Wednesday, the board of directors of Square Pharma approved the unaudited financial statement for the second quarter.
Despite several macroeconomic challenges on both global and domestic fronts, the pharma company displayed a handsome profit during the period thanks to policy support and the installation of tech-savvy machinery for the production of high-quality drugs.
Besides, the inclusion of anti-Covid drugs in its export basket also played a pioneering role in ramping up its earnings.
In the six months, the publicly traded company’s consolidated earnings per share (EPS) rose to Tk 12.69 from earnings per share of Tk 11.99 for the same period last year.
Meanwhile, in the second quarter [October-December period] of the current fiscal year, Square Pharma reported a net profit of Tk 524 crore, which was Tk 512 crore in the same quarter a year ago.
During this period, the company’s EPS stood at Tk 5.92 against Tk 5.78 year-on-year.
The company reported a consolidated net asset value (NAV) per share of Tk 132.07 as of December 31, 2023.
The leading drug manufacturer consolidated profit of more than Tk 600 crore in July–September of FY24, a 9.10 per cent increase from the same quarter a year before.
Accordingly, the earnings per share stood at Tk 6.77, up from Tk 6.20 for the same quarter of the previous year.
Square Pharmaceuticals reported Tk 1,897 crore in net profit in FY23, compared to Tk 1,818 crore in the previous fiscal year. The company paid a 105 per cent cash dividend for the year ended June 30, 2023, which is the highest in the company’s history.
In the last fiscal year, the publicly-traded company’s consolidated earnings per share (EPS) rose to Tk 21.41 from earnings per share of Tk 20.48 for FY22, the same period last year. The company reported a consolidated net asset value per share of Tk 129.95.
Square Pharmaceuticals witnessed a 15.06 per cent year-on-year surge in export receipts in the fiscal year 2022-23, thanks to policy support and the incorporation of tech-savvy machinery to produce quality drugs.
In the last fiscal year, the publicly-traded company’s standalone export revenue was Tk 196 crore, which was Tk 170 crore in FY 2021-22.
Meanwhile, its domestic revenue rose by 4.5 per cent to Tk 6,762 crore in FY23 from Tk 6,471 crore in the previous FY22. The company’s consolidated revenue from operations increased by 8.93 per cent to Tk 7,234 crore in FY23 compared to Tk 6,641 crore in the previous fiscal year.
“Square Pharma’s export market covers over 45 countries, and has undertaken all sorts of possible thrusts for increasing exports within the current capacity, which is expected to rise more in the coming years,” the company mentions in its latest annual report.
Square Pharma has received approval for the first ANDA from the USFDA during this period.
“A milestone achievement has been realised after obtaining regulatory approval on our manufacturing site from the National Health Surveillance Agency, Brazil. This will pave the way for entering our footsteps in Latin markets.”
In FY22, the pharma company disbursed a 100 per cent cash dividend to its shareholders. In fiscal year 2020-21, the company disbursed a 60 per cent cash dividend, and it paid a cash dividend of 47 per cent and a stock dividend of 5 per cent for the fiscal year 2019-20.
Speaking to The Business Post, a top official of Square Pharma said, “Investment is a part of our regular operations and expansion plan. We allocate a substantial slice of our profits for the investment plan because old machinery needs to be upgraded, while new equipment is also needed for further advancement.”
The drug maker also posted substantial growth in its business, riding on the unveiling of new drugs as well as its strong marketing strategy.
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.
The drug maker put a hefty investment of Tk 1,050 crore in BMRE (balancing, modernisation, rehabilitation, and expansion) to materialise the procurement, setting up new machinery, and land purchase for further expansion in four years.
Listed in 1995, the company’s shares closed at Tk 218 per share on the trading floor of the Dhaka Stock Exchange (DSE) on Wednesday.
