Most pharma cos report higher earnings in Q1 of FY20
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According to the Dhaka Stock Exchange (DSE) data, 24 pharmaceutical companies, out of a total of 32, disclosed their first-quarterly unaudited financial reports
Most of the listed pharmaceutical and chemical companies have reported higher earnings per share (EPS) in the first three months of the current fiscal (2019-20), compared to the same period of the previous fiscal (2018-19).
According to the Dhaka Stock Exchange (DSE) data, 24 pharmaceutical companies, out of a total of 32, disclosed their first-quarterly unaudited financial reports.
Growth of earnings of 14 or 58% of these companies increased, while 6 companies witnessed a decrease in the growth of their earnings in first quarter of FY20. One company’s earnings remain unchanged, while three companies reported losses.
Explaining the reasons behind this profit growth in the pharmaceutical sector, the sector insiders said that growing per capita income, population growth, rise in life expectancy, changing disease profile, lifestyle change and rapid urbanization were the key contributors.
Besides, new investments as well as the inclusion of modern technology increased the production capacity in the sector, they added.
Stakeholders in the sector attributed the high profit performance to increased and increasing demands for various types of drugs in both the local and foreign markets.
“Improved facilities for healthcare and diagnosis with modern technology coupled with the rapid increase of chronic diseases due to change in lifestyle and environment factors consist the other reasons for the notable growth of domestic drug market,” said SM Shafiuzzaman, secretary general of Bangladesh Association of Pharmaceutical Industries.
According to the DSE data, the Wata Chemicals posted the highest EPS growth among the listed companies in first quarter. The company's EPS stood at Tk4.11 in the first quarter of the current fiscal, registering a 52% increase compared to Tk2.71 of the same period in the previous fiscal.
EPS of Orion Infusion, Kohinoor Chemicals, Salvo Chemical, Indo-Bangla Pharma, Renata, JMI Syringes and Medical Devices, Orion Pharma, The Ibn Sina, Beximco Pharma, Advent Pharma, Beacon Pharma, Square Pharma, and The ACME Laboratories rose by 38%, 30%, 27%, 26%, 22%, 22%, 19%, 17%, 15%, 15%, 12%, 6%, and 3%, respectively, in the first three months of FY2020, compared to those of the same period of the previous fiscal.
The EPS of Far Chemical, Global Heavy Chemicals, Central Pharma, ACI Formulations, Silva Pharmaceuticals, and, Silco Pharma fell by 43%, 52%, 76%, 62%, 35%, and 14% in the first quarter of FY2019-20, compared to those of the same period of the previous fiscal.
Conversely, from July to September, the EPS of Pharma Aids remained unchanged at Tk4.63.
On the other hand, Advanced Chemical Industries (ACI) Limited reported negative Tk5.99 earnings per share in the first quarter of FY2019-20, which was Tk0.97 over the same period of the previous fiscal.
Shwapno, a super shop and a subsidiary of ACI Logistics, has been running a loss since its inception in 2008. During the 2017-18 fiscal, the super shop incurred a loss of Tk135 crore with an accumulated loss to the tune of Tk891 crore.
Talking to this correspondent, a stock broker said that the ACI Logistics Limited incurred losses because of Shwapno and, in the process, reduced profits of ACI Limited, its parent company.
The Imam Button Industries and Beximco Synthetics continue to incur losses.
According to the Bangladesh Association of Pharmaceutical Industries data, the country’s pharmaceutical industry is growing very fast, as the industry meets 98% of the domestic demand with a 27% growth in export earnings.
In 2018, the country's domestic pharmaceutical market size stood at Tk20, 511.8 crore with 15.6% compound annual growth rate (CAGR) for the last five years.
Source: https://www.dhakatribune.com