Square Pharmaceuticals PLC, the country’s largest drug maker, witnessed a 15.06 per cent year-on-year surge in export receipts in the fiscal year 2022-23 thanks to policy support and 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 FY2021-22.
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.
Finally, 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 mentioned in its latest annual report.
Square Pharma has received approval for 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.”
Square Pharmaceuticals reported Tk 1,897 crore in net profit in FY23 compared to Tk 1,818 crore in the previous fiscal year.
The board of directors of Square Pharma recommended 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 final approval of dividends is expected to come from its annual general meeting, scheduled to be held on December 24 through a virtual platform. The record date for the entitlement of dividends is November 16, 2023.
The company reported a consolidated net asset value (NAV) per share of Tk 129.95 and a consolidated net operating cash flow per share (NOCFPS) of Tk 9.64 for FY23 against Tk 118.68 and Tk 14.52 respectively, in the previous year.
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 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 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.
A top official of Square Pharma told The Business Post, “Investment is a part of our regular operations and expansion plan. We allocate a substantial slice of our profit for investment plan because old machinery needs to be upgraded while new equipment is also needed for further advancement.”
Meanwhile, the drug maker posted substantial growth in its business, riding on the unveiling of new drugs as well as its strong marketing strategy.
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 fiscal 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 fiscal year.
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 209.8 per share on the trading floor of the Dhaka Stock Exchange (DSE) on Thursday.
With an authorised capital of Tk 1000 crore, the drug maker has a paid-up capital base of Tk 886 crore, while its total number of securities stands at 685.95 million. The company’s retained earnings stood at Tk 10,334 crore in FY2022-23.
