Most listed drug makers declare higher profits

Almost all listed pharmaceutical companies in Bangladesh registered higher profits in the first half of the ongoing financial year (FY) thanks to increased health consciousness amid the coronavirus pandemic.

Among the 10 major drug makers that recently disclosed their latest financial reports, nine companies logged higher profits while only Silva Pharmaceuticals declared lower earnings for the period between July and December last year.

"The growth in sales and profit of listed pharmaceutical companies is encouraging," said Shahidul Islam, chief executive officer of VIPB Asset Management, which prefers to invest in pharmaceutical stocks from its portfolio of mutual funds.

"While many other sectors suffer, the pharma sector is witnessing good growth," he said, adding that companies which depend on the stability of the global supply chain or oil prices were badly impacted.

The 10 listed drug makers witnessed sales growth of 16 per cent on an average in the past six months, according to their earnings reports.

"Our expectations of the drug makers are very high because peoples' affordability has been rising, so they are becoming more conscious about healthcare," Islam said.

Besides, people are visiting doctors more often now following a slowdown during the early pandemic period, he added.

Among the top profit booking companies, Square Pharmaceuticals logged Tk 868 crore in the July-December period of FY 2021-22, up 19 per cent compared to the same period of the previous year.

Meanwhile, Beximco Pharmaceuticals saw its profits jump 41 per cent to Tk 313 crore. In terms of consolidated sales, the company achieved over 17 per cent growth year-on-year.

Moreover, Beximco's profits rose due to its added income from vaccine distribution fees, which were non-existent in the previous year.

Beximco earned Tk 61 crore from vaccine distribution fees in the period, according to the company's financial report.

Another top profit booking company, Renata Ltd, saw its turnover rise 6.5 per cent to Tk 1,512 crore in the July-December period this financial year.

Its profits shot up 12 per cent to Tk 270 crore, according to data on its financial statements.

The pharma industry grew at an average pace in the last six months as the sector normally observes a slow season from September to December, said Md Jubayer Alam, company secretary of Renata.

Now, the industry's has an average annual growth rate of about 10 per cent to 11 per cent, Alam said.

"Some of the companies saw higher growth than the overall industry either for cost rationalisation, changes to their business policy, or Covid-related medicine sales," he added.

Ibn Sina booked a 28 per cent growth in profits, registering Tk 32 crore in the last six months, when its sales rose 25 per cent to Tk 452 crore.

Profits of Orion Pharmaceuticals soared by 173 per cent to Tk 41 crore as the company's sales rose 13 per cent to Tk 146 crore, as per its financial report.

The Acme Laboratories saw its profits grow 37 per cent to Tk 109 crore while its revenue soared 16 per cent to Tk 1,161 crore, the data shows.