Last checked at 31 Jan 2019 07:00
BEXIMCO PHARMACEUTICALS LTD.
31 January 2019
Half Year Results 2018-19
Strong growth supplemented by strategic acquisition
Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM Symbol: BXP, LEI No.:213800IMBBD6TIOQGB56), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces its un-audited financial results for the six months ended 31 December 2018.
Please note that the comparative prior period's (July-December 2017) unaudited figures, as reported in the Consolidated Statement of Profit or Loss and other Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows, represent Beximco Pharmaceuticals Ltd. only as the subsidiaries were acquired / formed after that period end.
Financial highlights
Half year financial highlights (consolidated)
· Net sales increased 28.6% to Bangladesh Taka ("BDT") 11,109.8m / £103.8m (2017-18: BDT 8,638.5m / £77.3m)
o Domestic sales increased 22.5% to BDT 9,874.0m / £92.3m (2017-18: 8,058.4m / £72.1m)
o Export sales increased 113.0% to BDT 1,235.8m / £11.5m (2017-18: BDT 580.1m / £5.2m)
· Profit after tax increased 12.9% to BDT 1,487.2m / £13.9m (2017-18: BDT 1,317.4m / £11.8m)
Second quarter financial highlights
· Net sales increased 31.3% to BDT 5,724.7m / £53.5m (2017-18: BDT 4,359.9m / £39.0m)
· Profit after tax increased 9.0% to BDT 733.5m / £6.9m (2017-18: BDT 672.9m / £6.0m)
Operational highlights
· Eight new products launched in the domestic market
· Completed 39 registrations for 30 products in 16 countries
· Entered three new countries (Georgia, Mozambique and Laos)
· Launched fourth product, Metformin Hydrochloride (500mg and 750mg), an anti-diabetic, extended release drug in the US market
· Received US Food and Drug Administration (FDA) approval for two cardiovascular drugs: Nadolol (20mg, 40mg and 80mg tablets) and Sotalol AF (80 mg, 120 mg and 160 mg tablets)
· Launched Cyproheptadine tablet, an anti-allergic, and Moxifloxacin, an antibiotic eye drop, in Canada
· Won a Scrip Award in the category of 'Community Partnership of the Year' at the 14th Annual Scrip Awards ceremony held in London
Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:
"During the half year, Beximco Pharma delivered strong growth, supplemented by the strategic acquisition of Nuvista Pharma, as a result of continued expansion in our domestic and overseas markets. In the domestic market, we launched eight new products and we fully consolidated Nuvista Pharma into our operations. Internationally, we shipped our fourth product to the US and received FDA approval for two products, further strengthening our portfolio in this important market. Additionally, our corporate social responsibility initiatives were recognised at the prestigious Scrip Awards in London where we won the 'Community Partnership of the Year' award. We are confident that we will be able to achieve our operational and financial targets for the year across both domestic and export markets, as well as continuing to improve efficiencies across the business."
The half yearly accounts can be viewed at the Company's website: www.beximcopharma.com
(Exchange rates of £1 = Taka 107.0312 for 31 December 2018 numbers and £1 = Taka 111.7442 for 31 December 2017 have been used in this announcement.)
For further information please visit www.beximcopharma.com or enquire to:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 58611001, ext.20080
Md. Asad Ullah, FCS, Executive Director & Company Secretary
Tel: +880 2 58611891, +880 2 58612040, Ext 10140
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady / Andrew Emmott
Tel: +44 (0)20 3368 3551 / 3555
Northland Capital Partners Limited (Broker)
Vadim Alexandre / Dugald J. Carlean
Tel: +44 (0)20 3861 6627
FTI Consulting
Simon Conway / Victoria Foster Mitchell
Tel: +44 (0)20 3727 1000
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, injectable, nebuliser solutions, oral soluble films etc. Ensuring access to quality medicines is the powerful aspiration that motivates 4,200 employees of the Company.
Beximco Pharma′s state-of-the-art manufacturing facilities are certified by global regulatory authorities of USA, Europe, Australia, Canada, GCC and Latin America, among others. The Company's 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 South East Asia, including Singapore, Thailand, Taiwan, Malaysia, Indonesia, Philippines and Hong Kong; Africa, including South Africa, Mauritius, Kenya, Ghana, Ethiopia, Uganda and Nigeria; Central Asia, including Azerbaijan; Middle East, including Kuwait and Jordan; Pacific Island countries; Latin and Central American countries; Europe, including Austria, Germany and Romania; Australia and North America, including the USA and Canada.
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Financial Position (Un-audited)
As at 31 December 2018
Taka '000 | ||||
As at 31 December 2018 | As at 30 June 2018 | |||
ASSETS | ||||
Non-Current Assets | 32,821,414 | 32,394,687 | ||
Property, Plant and Equipment- Carrying Value | 30,985,462 | 30,524,693 | ||
Intangible Assets | 1,254,103 | 1,280,695 | ||
Goodwill | 546,691 | 546,691 | ||
Investments in Shares | 35,158 | 36,508 | ||
Other Non-current Assets | - | 6,100 | ||
Current Assets | 13,175,020 | 11,344,199 | ||
Inventories | 6,290,604 | 5,058,848 | ||
Spares & Supplies | 691,264 | 663,911 | ||
Accounts Receivable | 3,050,348 | 2,761,509 | ||
Loans, Advances and Deposits | 2,253,593 | 2,094,230 | ||
Advance Income Tax | 32,973 | 32,568 | ||
Short Term Investment | 356,627 | 339,397 | ||
Cash and Cash Equivalents | 499,611 | 393,736 | ||
TOTAL ASSETS | 45,996,434 | 43,738,886 | ||
| ||||
SHAREHOLDERS' EQUITY AND LIABILITIES
| ||||
Equity Attributable to the Owners of the Company | 28,042,675 | 27,081,963 | ||
Issued Share Capital | 4,055,564 | 4,055,564 | ||
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 | 1,135,294 | 1,159,278 | ||
Unrealised Gain / (Loss) | 3,007 | 4,357 | ||
Retained Earnings | 15,594,747 | 14,608,701 | ||
Non-Controlling Interest | 267,825 | 269,874 | ||
TOTAL EQUITY | 28,310,500 | 27,351,837 | ||
Non-Current Liabilities | 6,890,282 | 7,368,863 | ||
Long Term Borrowings-Net of Current Maturity | 3,260,414 | 4,017,425 | ||
Liability for Gratuity and WPPF & Welfare Funds | 1,623,918 | 1,324,166 | ||
Deferred Tax Liability | 2,005,950 | 2,027,272 | ||
Current Liabilities and Provisions | 10,795,652 | 9,018,186 | ||
Short Term Borrowings | 6,432,012 | 5,600,827 | ||
Long Term Borrowings-Current Maturity | 1,678,537 | 1,568,990 | ||
Creditors and Other Payables | 815,789 | 991,713 | ||
Accrued Expenses | 702,800 | 418,477 | ||
Dividend Payable | 511,389 | 4,763 | ||
Income Tax Payable | 655,125 | 433,416 | ||
TOTAL EQUITY AND LIABILITIES | 45,996,434 | 43,738,886 |
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Profit or Loss and Other Comprehensive Income (Un-audited)
For the Half Year Ended 31 December 2018
Taka '000 | ||||||||
July - December 2018 | July - December 2017 | 2nd Quarter (Oct-Dec) 2018 | 2nd Quarter (Oct-Dec) 2017 | |||||
Net Revenue | 11,109,798 | 8,638,539 | 5,724,672 | 4,359,864 | ||||
Cost of Goods Sold | (5,939,756) | (4,650,767) | (3,084,613) | (2,346,282) | ||||
Gross Profit | 5,170,042 | 3,987,772 | 2,640,059 | 2,013,582 | ||||
Operating Expenses | (2,684,899) | (1,996,013) | (1,385,122) | (980,237) | ||||
Administrative Expenses | (365,072) | (291,663) | (200,770) | (148,152) | ||||
Selling, Marketing and Distribution Expenses | (2,319,827) | (1,704,350) | (1,184,352) | (832,085) | ||||
Profit from Operations | 2,485,143 | 1,991,759 | 1,254,937 | 1,033,345 | ||||
Other Income | 30,531 | 28,809 | 10,011 | 6,398 | ||||
Finance Cost | (482,180) | (205,877) | (253,363) | (99,707) | ||||
Profit Before Contribution to WPPF & Welfare Funds | 2,033,494 | 1,814,691 | 1,011,585 | 940,036 | ||||
Contribution to WPPF & Welfare Funds | (97,838) | (86,414) | (48,673) | (44,764) | ||||
Profit Before Tax | 1,935,656 | 1,728,277 | 962,912 | 895,272 | ||||
Income Tax Expenses | (448,434) | (410,859) | (229,406) | (222,350) | ||||
Current Tax | (489,153) | (416,443) | (236,325) | (213,806) | ||||
Deferred Tax Income/ (Expense) | 40,719 | 5,584 | 6,919 | (8,544) | ||||
Profit After Tax | 1,487,222 | 1,317,418 | 733,506 | 672,922 | ||||
Profit/(Loss) Attributable to: | ||||||||
Owners of the Company | 1,488,403 | 1,317,418 | 733,472 | 672,922 | ||||
Non-controlling interest | (1,181) | - | 34 | - | ||||
1,487,222 | 1,317,418 | 733,506 | 672,922 | |||||
Other Comprehensive Income-Unrealised Gain / (Loss) | (1,350) | (103) | (265) | 267 | ||||
Total Comprehensive Income | 1,485,872 | 1,317,315 | 733,241 | 673,189 | ||||
Total Comprehensive Income Attributable to: | ||||||||
Owners of the Company | 1,487,053 | 1,317,315 | 733,207 | 673,189 | ||||
Non-controlling interest | (1,181) | - | 34 | - | ||||
1,485,872 | 1,317,315 | 733,241 | 673,189 | |||||
Earnings Per Share (EPS) | Tk. | 3.67 | 3.25 | 1.81 | 1.66 | |||
Number of Shares Used to Compute EPS | Nos. | 405,556,445 | 405,556,445 | 405,556,445 | 405,556,445 |
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Changes in Equity (Un-audited)
For the Half Year Ended 31 December 2018
For the Half Year Ended 31 December 2018 | Taka '000 | |||||||||
Share Capital | Share Premium | Excess of Issue Price over Face Value of GDRs | Capital Reserve on Merger | Revaluation Surplus | Unrealised Gain / (Loss) | Retained Earnings | Equity Attributable to the Owners of the Company | Non-Controlling Interests | Total Equity | |
Balance as on 1 July 2018 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,159,278 | 4,357 | 14,608,701 | 27,081,963 | 269,874 | 27,351,837 |
Total Comprehensive Income: | ||||||||||
Profit / (Loss) for the Period | - | - | - | - | - | - | 1,488,403 | 1,488,403 | (1,181) | 1,487,222 |
Other Comprehensive Income / (Loss) | - | - | - | - | - | (1,350) | - | (1,350) | - | (1,350) |
Transactions with the Shareholders: | ||||||||||
Cash Dividend | - | - | - | - | - | - | (506,945) | (506,945) | (868) | (507,813) |
Adjustment for Depreciation on Revalued Assets | - | - | - | - | (4,588) | - | 4,588 | - | - | |
Adjustment for Deferred Tax on Revalued Assets | - | - | - | - | (19,396) | - | - | (19,396) | (19,396) | |
Balance as on 31December 2018 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,135,294 | 3,007 | 15,594,747 | 28,042,675 | 267,825 | 28,310,500 |
Number of Shares | 405,556,445 | |||||||||
Net Asset Value (NAV) Per Share | 69.15 | |||||||||
For the Half Year Ended 31 December 2017 | Taka '000 | |||||||
Share Capital | Share Premium | Excess of Issue Price over Face Value of GDRs | Capital Reserve on Merger | Revaluation Surplus | Unrealised Gain / (Loss) | Retained Earnings | Total | |
Balance as on 1 July 2017 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,190,204 | 3,875 | 12,568,720 | 25,072,426 |
Total Comprehensive Income for the period: | ||||||||
Profit for the Period | - | - | - | - | - | - | 1,317,418 | 1,317,418 |
Other Comprehensive Income / (Loss) | - | - | - | - | - | (103) | - | (103) |
Transactions with the Shareholders: | ||||||||
Cash Dividend | - | - | - | - | - | - | (506,945) | (506,945) |
Adjustment for Depreciation on Revalued Assets | - | - | - | - | (5,191) | - | 5,191 | - |
Adjustment for Deferred Tax on Revalued Assets | - | - | - | - | (21,841) | - | - | (21,841) |
Balance as on 31 December 2017 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,163,172 | 3,772 | 13,384,384 | 25,860,955 |
Number of Shares on 31 December 2017 | 405,556,445 | |||||||
Net Asset Value (NAV) Per Share on 31 December 2017 | Tk. | 63.77 | ||||||
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Cash Flows (Un-audited)
For the Half Year Ended 31 December 2018
Taka '000 | ||||
July - December 2018 | July - December 2017 | |||
Cash Flows from Operating Activities: | ||||
Receipts from Customers and Others | 10,864,946 | 8,318,280 | ||
Payments to Suppliers and Employees | (9,279,882) | (6,443,336) | ||
Cash Generated from Operations | 1,585,064 | 1,874,944 | ||
Interest Paid | (482,180) | (205,877) | ||
Interest Received | 18,132 | 40,194 | ||
Income Tax Paid | (267,848) | (433,915) | ||
Net Cash Generated from Operating Activities | 853,168 | 1,275,346 | ||
Cash Flows from Investing Activities: | ||||
Acquisition of Property, Plant and Equipment | (876,834) | (2,091,062) | ||
Intangible Assets | (10,604) | (64,282) | ||
Investment in Subsidiary | (20,000) | - | ||
Disposal of Property, Plant and Equipment | 1,806 | 1,354 | ||
(Increase) / Decrease in Short Term Investment | (17,230) | 560,027 | ||
Net Cash Used in Investing Activities | (922,862) | (1,593,963) | ||
Cash Flows from Financing Activities: | ||||
Net Increase/(Decrease) in Long Term Borrowings | (654,507) | 948,653 | ||
Net Increase/(Decrease) in Short Term Borrowings | 831,186 | (527,804) | ||
Dividend Paid | (1,187) | - | ||
Net Cash Generated from Financing Activities | 175,492 | 420,849 | ||
Increase / (Decrease) in Cash and Cash Equivalents | 105,798 | 102,232 | ||
Cash and Cash Equivalents at Beginning of Period | 393,736 | 275,028 | ||
Effect of movement in exchange rates on cash held | 77 | - | ||
Cash and Cash Equivalents at End of Period | 499,611 | 377,260 | ||
Net Operating Cash Flow Per Share | 2.10 | 3.14 | ||
Number of Shares Used to Compute Net Operating Cash Flow Per Share | 405,556,445 | 405,556,445 |