Last checked at 31 Jul 2013 07:00
31st July, 2013
BEXIMCO PHARMACEUTICALS LTD.
Half Year Results - 2013
Beximco Pharmaceuticals Limited ("BPL" or "the Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces its un-audited results for the six months ended 30 June 2013.
Highlights
Half year financial highlights
·; Net sales increased by 14.3% to Bangladesh Taka ("BDT") 4,966.4m / £42m (2012: BDT 4,346.3m / £33.8m)
·; Domestic sales increased 11.6% to BDT 4,634.9m / £39.2m (H1 2012: BDT 4,152.2m / £32.3m)
·; Export sales increased 70.7% to BDT 331.4m / £2.8m (H1 2012: BDT 194.1m / £1.5m)
·; Profit before tax increased by 12.7% to BDT 955.6m /£8.1m (H1 2012: BDT 847.7m / £6.6m)
Second quarter highlights
·; Net sales increased 27.3% to BDT 2,703.3m /£22.9m (2012: BDT 2,123.9m / £16.5m)
·; Profit before tax increased 38.2% to BDT 572.1m /£4.8m (2012: BDT 413.9m / £3.2m)
Operational highlights
·; Launched 18 products in the domestic market; five of them (Calorate Tablet, Jointec Max Tablet, Hemofix Tablet, Hemofix FZ tablet and Citicol Injection) were launched for the first time in Bangladesh
·; Registered 23 products in seven overseas markets
·; Entered the European market with two ophthalmic products namely Latanoprost and a combination of Latanoprost and Timolol. These two glaucoma drugs are being exported to Germany and Austria. This is for the first time ophthalmic products have been exported to Europe from Bangladesh
·; Obtained marketing authorization for a product in Australia
Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:
"We are satisfied with our performance in the first half of 2013, considering the unstable political situation prevailing in the country which has affected business and economic activities across all industries. Both our revenue and profit grew over the comparative prior year period. As a result of our continued efforts, we successfully entered the German and Austrian markets in February 2013 - which is a major milestone for the entire industry. This is the first time a Bangladeshi company has succeeded in exporting its own pharmaceutical formulations into Europe. At this halfway point in the year, we are pleased with our progress achieved to date and notwithstanding a further worsening of the overall political environment, we remain hopeful of achieving our year-end targets."
The half yearly accounts can be viewed at the Company's website:
www.beximcopharma.com
(Exchange rates of £1 = 118.3 Taka for 30 June 2013 numbers and £1 = Taka 128.5 for 30 June 2012 have been used in this announcement.)
For further enquiries please contact:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 861 9151, ext.20080
Md. Asad Ullah, FCS, Executive Director & Company Secretary
Tel; +880 2 8618220-1, Ext 10140
Libertas Capital Corporate Finance
Thilo Hoffmann
Tel: +44 (0)20 3697 9494
FTI Consulting
Simon Conway / Susan Stuart / Victoria Foster-Mitchell
Tel: +44 (0)20 7269 7169
Notes to Editors
About Beximco Pharmaceuticals Limited
Founded in 1976 and based in Dhaka, Bangladesh, Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies. The Company operates from a 23 acre site in Dhaka and has manufacturing facilities for producing various drugs in different delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, prefilled syringes, injectables, nebulizer solutions etc. Ensuring access to quality medicines is the powerful aspiration that motivates 2,800 employees of the Company.
Beximco Pharma's state-of-the-art manufacturing facilities are certified by global regulatory authorities of Australia, European Union, Gulf nations, and Brazil, among others. The Company has entered the EU pharma market in 2013 and its products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in Africa, including Mauritius, Kenya, Ghana and Nigeria, Pacific Island and Latin & Central American countries, Middle East and South East Asia, including Singapore, Malaysia, Philippines and Hong Kong.
BEXIMCO PHARMACEUTICALS LTD.
Statement of the Managing Director
Dear Shareholders,
We are pleased to present the un-audited interim financial results for the half year ended June 30, 2013 in compliance with Rule 13 of the Securities and Exchange Commission Rules 1987.
We continued to make progress in the first half of 2013 with reported results largely in line with our expectations. Despite the unstable political environment prevailing in the country throughout this half, we managed to achieve a sales growth higher than the Industry average. The Company achieved net sales revenue of Tk. 4,966.4 million, up 14.3% over the corresponding period in 2012. This furnished pre-tax profits of Tk. 955.6 million compared to Tk. 847.7 million earned during the same period in the previous year.
Our export sales registered an excellent 70.7% growth to reach Tk. 331.4 million. In the first quarter of this year, we entered into the European market through commencement of export to Germany and Austria. This is a significant milestone, not only for the Company alone, but for the entire Bangladesh Pharmaceutical Industry. This is for the first time that a Bangladeshi company has succeeded in exporting its own pharmaceutical formulations to Europe. Additionally, in this half, we have obtained marketing authorization for a product in Australia.
We continued to make progress in our domestic markets with the launch of eighteen new products; five of them being introduced in the country for the first time. We have also successfully registered 23 products in seven overseas markets during this six-month period.
At this halfway point in the year, we are pleased with our progress achieved to date and notwithstanding a further worsening of the overall political environment, we remain hopeful of achieving our year-end targets.
We look forward to your continued support.
Nazmul Hassan
Managing Director
BEXIMCO PHARMACEUTICALS LTD.
Statement of Financial Position (Un-audited)
As at June 30, 2013
Taka' 000 | |||
As at June 30, | As at December 31, | ||
Notes | 2013 | 2012 | |
ASSETS | |||
Non-Current Assets | 16,331,183 | 16,392,388 | |
Property, Plant and Equipment- Carrying Value | 3 | 16,126,145 | 16,201,858 |
Intangible Assets | 201,587 | 187,079 | |
Investment | 3,451 | 3,451 | |
Current Assets | 8,629,567 | 8,197,422 | |
Inventories | 4 | 2,567,022 | 2,433,988 |
Spares & Supplies | 413,166 | 396,176 | |
Accounts Receivable | 1,210,546 | 1,162,405 | |
Loans, Advances and Deposits | 5 | 1,042,813 | 965,276 |
Short Term Investment | 2,797,418 | 2,686,598 | |
Cash and Cash Equivalents | 6 | 598,602 | 552,979 |
TOTAL ASSETS | 24,960,750 | 24,589,810 | |
EQUITY AND LIABILITIES | |||
Shareholders' Equity | 19,025,445 | 18,408,162 | |
Issued Share Capital | 3,503,349 | 3,046,390 | |
Share Premium | 5,269,475 | 5,269,475 | |
Excess of Issue Price over Face Value of GDRs | 1,689,637 | 1,689,637 | |
Capital Reserve on Merger | 294,951 | 294,951 | |
Revaluation Surplus | 1,356,189 | 1,406,528 | |
Retained Earnings | 6,911,844 | 6,701,181 | |
Non-Current Liabilities | 3,204,839 | 3,116,704 | |
Long Term Borrowings-Net off Current Maturity (Secured) | 7A | 1,284,162 | 1,469,622 |
Liability for Gratuity & WPPF | 638,401 | 499,623 | |
Deferred Tax Liability | 1,282,276 | 1,147,459 | |
Current Liabilities and Provisions | 2,730,466 | 3,064,944 | |
Short Term Borrowings | 1,166,804 | 1,526,450 | |
Long Term Borrowings-Current Maturity | 7B | 767,009 | 664,713 |
Creditors and Other Payables | 374,719 | 470,097 | |
Accrued Expenses | 59,170 | 128,599 | |
Dividend Payable | 999 | 1,021 | |
Income Tax Payable | 361,765 | 274,064 | |
TOTAL EQUITY AND LIABILITIES | 24,960,750 | 24,589,810 |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Comprehensive Income (Un-audited)
For the Half Year Ended June 30, 2013
Taka'000 | |||||
Notes | Half-Year | Half-Year | 2nd Quarter | 2nd Quarter | |
ended | ended | (April - June) | (April - June) | ||
June 30, 2013 | June 30, 2012 | 2013 | 2012 | ||
Net Sales Revenue | 4,966,358 | 4,346,354 | 2,703,345 | 2,123,984 | |
Cost of Goods Sold | 8 | (2,728,766) | (2,367,543) | (1,464,384) | (1,151,431) |
Gross Profit | 2,237,592 | 1,978,811 | 1,238,961 | 972,553 | |
Operating Expenses : | (1,189,495) | (966,300) | (619,698) | (473,270) | |
Administrative Expenses | 9 | (196,164) | (150,882) | (104,614) | (77,265) |
Selling, Marketing and Distribution Expenses | 10 | (993,331) | (815,418) | (515,084) | (396,005) |
Profit from Operations | 1,048,097 | 1,012,511 | 619,263 | 499,283 | |
Other Income | 247,518 | 207,323 | 125,075 | 104,804 | |
Finance Cost | (292,218) | (329,725) | (143,573) | (169,469) | |
Profit Before Contribution to WPP & Welfare Funds | 1,003,397 | 890,109 | 600,765 | 434,618 | |
Contribution to WPP & Welfare Funds | (47,781) | (42,386) | (28,608) | (20,696) | |
Profit Before Tax | 955,616 | 847,723 | 572,157 | 413,922 | |
Income Tax Expenses | (297,112) | (234,318) | (196,580) | (107,829) | |
Profit After Tax | 658,504 | 613,405 | 375,577 | 306,093 | |
Other Comprehensive Income | |||||
Total Comprehensive Income | 658,504 | 613,405 | 375,577 | 306,093 | |
Earnings Per Share (EPS) / Restated EPS | Tk. | 1.88 | 1.75 | 1.07 | 0.87 |
Number of Shares used to compute EPS | 350,334,907 | 350,334,907 | 350,334,907 | 350,334,907 | |
(Note 11) |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Changes in Equity (Un-audited)
For the Period ended June 30, 2013
Half Year ended June 30, 2013 | Taka'000 | ||||||
Share capital | Share premium | Excess of issue price over face value of GDRs | Capital reserve on merger | Revaluation surplus | Retained earnings | Total | |
Balance as on January 01, 2013 | 3,046,390 | 5,269,475 | 1,689,637 | 294,951 | 1,406,528 | 6,701,181 | 18,408,162 |
Total Comprehensive Income | 658,504 | 658,504 | |||||
Stock Dividend for 2012 | 456,959 | (456,959) | |||||
Adjustment for Depreciation on Revalued Assets | (9,118) | 9,118 | |||||
Adjustment for Deferred Tax on Revalued Assets | (41,221) | (41,221) | |||||
As on June 30, 2013 | 3,503,349 | 5,269,475 | 1,689,637 | 294,951 | 1,356,189 | 6,911,844 | 19,025,445 |
Number of Shares on June 30, 2013 | 350,334,907 | ||||||
Net Asset Value (NAV) Per Share | Tk. | 54.31 | |||||
Half Year ended June 30, 2012 | |||||||
Share capital | Share premium | Excess of issue price over face value of GDRs | Capital reserve on merger | Revaluation surplus | Retained earnings | Total | |
Balance as on January 01, 2012 | 2,517,678 | 5,269,475 | 1,689,637 | 294,951 | 1,466,603 | 5,889,785 | 17,128,129 |
Total Comprehensive Income | 613,405 | 613,405 | |||||
Stock Dividend for 2011 | 528,712 | (528,712) | |||||
Adjustment for Depreciation on Revalued Assets | (10,360) | 10,360 | |||||
Adjustment for Deferred Tax on Revalued Assets | (46,577) | 46,577) | |||||
As on June 30, 2012 | 3,046,390 | 5,269,475 | 1,689,637 | 294,951 | 1,409,666 | 5,984,838 | 17,694,957 |
Number of Shares on June 30, 2012 | 304,639,050 | ||||||
Net Asset Value (NAV) Per Share | Tk. | 58.08 |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Cash Flows (Un-audited)
For the Half-year ended June 30, 2013
Taka'000 | |||
Half-Year | Half-Year | ||
ended | ended | ||
June 30, 2013 | June 30, 2012 | ||
Cash Flows from Operating Activities : | |||
Receipts from Customers and Others | 4,917,071 | 4,300,864 | |
Payments to Suppliers and Employees | (3,924,666) | (3,083,742) | |
Cash Generated from Operations | 992,405 | 1,217,122 | |
Interest Paid | (292,218) | (329,725) | |
Interest Received | 248,664 | 204,036 | |
Income Tax Paid | (115,816) | (88,647) | |
Net Cash Generated from Operating Activities | 833,035 | 1,002,786 | |
Cash Flows from Investing Activities : | |||
Acquisition of Property, Plant and Equipment | (212,249) | (704,325) | |
Intangible Assets | (21,571) | (21,207) | |
Disposal of Property, Plant and Equipment | 60 | 4,480 | |
Short Term Investment | (110,820) | (353,195) | |
Net Cash Used in Investing Activities | (344,580) | (1,074,247) | |
Cash Flows from Financing Activities : | |||
Net Increase / (Decrease) in Long Term Borrowings | (83,164) | (54,862) | |
Net Increase / (Decrease) in Short Term Borrowings | (359,646) | 119,294 | |
Ordinary Share Dividend | (22) | (132) | |
Net Cash Generated from Financing Activities | (442,832) | 64,300 | |
Increase / (Decrease) in Cash and Cash Equivalents | 45,623 | (7,161) | |
Cash and Cash Equivalents at Beginning of Period | 552,979 | 518,768 | |
Cash and Cash Equivalents at End of Period | 598,602 | 511,607 | |
Net Operating Cash Flow Per Share | Tk. | 2.38 | 3.29 |
Number of Shares used to compute Net Operating Cash Flow Per Share | 350,334,907 | 304,639,050 |
Beximco Pharmaceuticals Limited
Selected Notes to the Financial Statements (Un-audited)
For the Period ended June 30, 2013
1. Reporting Entity
Beximco Pharmaceuticals Limited (BPL/the Company) is a public company incorporated in Bangladesh in 1976. It commenced its manufacturing operation in 1980. The company is listed on Dhaka and Chittagong Stock Exchanges of Bangladesh and AIM of London Stock Exchange. The company is engaged in manufacturing and marketing of Pharmaceuticals Finished Formulation Products, Active Pharmaceutical Ingredients (APIs) and life saving Intravenous Fluids which it sells in the local as well as international markets. The registered office of the company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The Industrial units are located at Tongi and Kaliakoir of Gazipur District - vicinities close to the capital city Dhaka.
2. Basis of Preparation of Financial Statements
These interim financial statements should be read in conjunction with the Financial Statements for the year ended December 31, 2012 (hereafter referred to as the "Annual Financial Statements"), as they provide an update to previously reported information.
The accounting policies used are consistent with those used in the Annual Financial Statements. The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs).The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where necessary, the comparatives have been reclassified or extended to take into account any presentational changes made in the Annual Financial Statements. The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.
As at June 30, | As at December 31, | |
2013 | 2012 | |
3. Property, Plant & Equipment | ||
Cost / Revaluation | ||
Land | 3,302,882 | 3,302,102 |
Building and Other Constructions | 6,340,926 | 6,333,171 |
Plant & Machinery | 7,454,110 | 7,393,576 |
Furniture & Fixture | 164,502 | 157,600 |
Transport & Vehicle | 459,542 | 458,377 |
Office Equipment | 344,035 | 329,522 |
18,065,997 | 17,974,348 | |
Accumulated Depreciation | 4,402,592 | 4,114,781 |
13,663,405 | 13,859,567 | |
Capital Work in Progress | 2,462,740 | 2,342,291 |
Carrying Value | 16,126,145 | 16,201,858 |
Taka'000 | ||
As at June 30, | As at December 31, | |
2013 | 2012 | |
4. Inventories | ||
Finished Goods | 604,163 | 629,829 |
Raw and Packing Material (Including Work in Process and Transit) | 1,892,928 | 1,737,244 |
Sample & Others | 69,931 | 66,915 |
2,567,022 | 2,433,988 | |
5. Loans, Advances and Deposits | ||
Clearing & Forwarding | 31,635 | 19,351 |
VAT | 207,474 | 215,793 |
Security Deposit and Earnest Money | 20,513 | 23,151 |
Capital Expenditure / Project | 54,725 | 54,725 |
Expenses | 119,150 | 63,699 |
Advance against Salary | 60,269 | 64,266 |
Motor Cycle | 118,206 | 132,315 |
Raw & Packing Material | 350,813 | 330,283 |
Overseas Liaison Office | 19,444 | 17,420 |
Others | 60,584 | 44,273 |
1,042,813 | 965,276 | |
6. Cash and Cash Equivalents | ||
(a) Cash In Hand (Including Imprest Cash) | 2,735 | 2,540 |
(b) Cash at Bank: | ||
i) Current & FC Account | 106,986 | 85,035 |
ii) FDR Account | 488,881 | 465,404 |
598,602 | 552,979 | |
7. Long Term Borrowings | ||
A. Net off Current Maturity (Secured) | ||
Project Loan | 1,197,123 | 1,336,417 |
Obligation Under Finance leases | 87,039 | 133,205 |
1,284,162 | 1,469,622 | |
B. Current Maturity | ||
Project Loan | 674,677 | 568,589 |
Interest and PAD Block | 3,792 | |
Obligation Under Finance leases | 92,332 | 92,332 |
767,009 | 664,713 | |
Taka'000
|
| ||
Half Year ended | Half Year ended |
| |
June 30, 2013 | June 30, 2012 |
| |
| |||
8. Cost of Goods Sold |
| ||
| |||
Materials | 1,987,741 | 1,745,854 |
|
Factory Overhead | 480,474 | 361,255 |
|
Depreciation | 260,551 | 260,434 |
|
2,728,766 | 2,367,543 |
| |
| |||
| |||
9. Administrative Expenses |
| ||
| |||
Salary & Allowances | 81,937 | 68,214 |
|
Repairs & Maintenance | 15,142 | 10,267 |
|
Travelling & Conveyance | 8,546 | 8,425 |
|
AGM, Company Secretarial Expenses and Regulatory Fees | 25,295 | 24,409 |
|
Depreciation | 10,077 | 10,072 |
|
Other Expenses | 55,167 | 29,495 |
|
196,164 | 150,882 |
| |
| |||
| |||
10. Selling, Marketing and Distribution Expenses |
| ||
| |||
Salary & Allowances | 316,063 | 254,680 |
|
Travelling & Conveyance | 132,043 | 112,038 |
|
Market Research & New Products | 19,036 | 18,624 |
|
Sample, Literature & Promotional Expenses | 288,885 | 235,531 |
|
Delivery Expense | 146,901 | 116,679 |
|
Depreciation and Amortization | 24,338 | 23,380 |
|
Other Expenses | 66,065 | 54,486 |
|
993,331 | 815,418 |
| |
11. Dividend for 2012
The Shareholders of the company has approved 15% stock dividend for the year 2012 in the annual general meeting held on June 29, 2013. The company consistently follows the policy of recognising proposed dividend after its approval by the shareholders in the annual general meeting. Hence, the dividend for 2012 has been accounted for in this interim financial statement. EPS has been computed taking into account the additional number of shares issued.