Last checked at 31 Jul 2012 07:00
BEXIMCO PHARMACEUTICALS LTD.
31st July, 2012
Half Year Results - 2012
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 2012.
Highlights
Half year financial highlights
·; Net sales increased by 19.3% to Bangladesh Taka ("BDT") 4,346.3m / £33.8m (2011: BDT 3,642.3m / £30.5m)
·; Domestic sales increased 19.7% to BDT 4,152.2m / £32.3m (H1 2011: BDT 3,468.8m / £29.1m)
·; Export sales increased 11.86% to BDT 194.1m / £1.5m (H1 2011: BDT 173.5m / £1.5m)
·; Profit before tax increased by 10.9% to BDT 847.7m /£6.6m (H1 2011: BDT 764.5m / £6.4m)
Second quarter highlights
·; Net sales increased 7.8% to BDT 2,123.9m /£16.5m (2011: BDT 1,970.6m / £16.5m)
·; Profit before tax decreased 10.2% to BDT 413.9m /£3.2m (2011: BDT 461.4m / £3.9m)
Operational highlights
·; 17 new products launched
·; 28 products registered in 9 different countries including Azerbaijan and New Zealand
·; Entered 4 new markets - Liberia, Mauritius, Ethiopia and Suriname
·; Product submitted to UK regulatory authority; additional product submissions expected in H2 2012
·; First Bangladeshi company to launch Salbutamol HFA Inhaler in Singapore
·; Received GMP (Good Manufacturing Practices) accreditation from Austrian regulatory authority for new MDI and new Sterile Ophthalmic Facilities; TGA (Australia) for new Sterile Ophthalmic facility; and GMP approval from MCC (South Africa) for inhaler products
Post-period events
·; Submitted one product dossier for marketing authorization in EU
·; Credit Rating Information and Services Limited, a Bangladeshi credit rating Company, has assigned an improved "AA-" rating in the long term and "ST-2" rating in the short term (2008: "A-" in the long term and "ST-3" rating in the short term)
Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:
"I am pleased to report continued progress in the first half of 2012 with the numbers largely in line with our expectations. During the period we increased both revenues and profits in domestic and overseas markets. Our focus remains on delivering long-term sustainable growth and profitability which requires continued investment in R&D, to expand our product portfolio in different markets."
The half yearly accounts can be viewed at the Company's website:
www.beximcopharma.com
(Exchange rates of £ 1 = Taka 128.5 for 30 June 2012 numbers and £ 1 = Taka 119.3 for 30 June 2011 have been used in this announcement.)
For further enquiries please contact:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 861 9151, ext.2080
Md. Asad Ullah, FCS, Executive Director & Company Secretary
Tel; +880 2 8618220-1, Ext 1140
Libertas Capital Corporate Finance
Thilo Hoffmann
Tel: +44 (0)20 7569 9650
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, BPL manufactures and sells generic pharmaceutical formulation products, active pharmaceutical ingredients and intravenous fluids. The Company also manufactures and markets its own branded generics for almost all diseases. The Company also undertakes contract manufacturing for multinational pharmaceutical companies. The Company operates from a 20 acre site in Dhaka and currently employs over 2,500 staff.
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 East Africa, Pacific Island and Central American countries and South East Asia, including Singapore 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, 2012 in compliance with Rule 13 of the Securities and Exchange Commission Rules 1987.
During the period the Company achieved net sales revenue of Tk. 4,346.4 million, up 19.3% on the corresponding period in 2011. The pre-tax profit stood at Tk. 847.7 million compared to Tk. 764.6 million earned during the same period in 2011. Our export sales also registered 11.9% growth reaching Tk. 194.1 million.
The pharmaceutical industry as a whole experienced a slower sales growth in the second quarter after the robust growth seen in the first quarter of 2012. The gross margin as a percentage of sales has declined compared to the corresponding period in 2011 principally due to a higher impact of domestic inflation and depreciation of Taka against US Dollar that continued throughout 2011. However, the economy has since improved, the Taka/Dollar rate has stabilized, domestic inflation has slowed and the liquidity situation is improving.
A number of our existing brands continued to maintain strong growth, the main driver behind overall sales growth. During the period we successfully added 17 new products to our portfolio. In the overseas business, we entered into four new markets namely Liberia, Suriname, Mauritius and Ethiopia; registered 28 products in 9 different countries including New Zealand and Azerbaijan and successfully launched our CFC free Salbutamol inhaler in Singapore.
We submitted one product dossier to the UK Medicines and Healthcare products Regulatory Agency (MHRA), with further product submissions expected in the second half of the year. Additionally, in July, we submitted a product dossier for marketing authorization in EU. This is a major milestone for the Company, allowing us to establish a presence in Europe's attractive generic drug market.
We are pleased with the progress made during the first half of the year and are confident of achieving further success in H2 2012.
We look forward to your continued support.
Nazmul Hassan
Managing Director
BEXIMCO PHARMACEUTICALS LTD.
Statement of Financial Position (Un-audited)
As at June 30, 2012
Taka' 000 | |||
As at June 30, | As at December 31, | ||
Notes | 2012 | 2011 | |
ASSETS | |||
Non-Current Assets | 16,314,872 | 15,884,878 | |
Property, Plant and Equipment Carrying Value | 3 | 16,160,394 | 15,745,493 |
Intangible Assets | 151,027 | 135,934 | |
Investment in Shares | 3,451 | 3,451 | |
Current Assets | 7,690,270 | 7,148,463 | |
Inventories | 4 | 2,396,945 | 2,291,845 |
Spares & Supplies | 327,259 | 325,881 | |
Accounts Receivable | 1,024,171 | 978,224 | |
Loans, Advances and Deposits | 5 | 883,669 | 840,321 |
Short Term Investment | 2,546,619 | 2,193,424 | |
Cash and Cash Equivalents | 6 | 511,607 | 518,768 |
TOTAL ASSETS | 24,005,142 | 23,033,341 | |
EQUITY AND LIABILITIES | |||
Shareholders' Equity | 17,694,957 | 17,128,129 | |
Issued Share Capital | 3,046,390 | 2,517,678 | |
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 | 1,409,666 | 1,466,603 | |
Retained Earnings | 5,984,838 | 5,889,785 | |
Non-Current Liabilities | 3,468,559 | 3,257,051 | |
Long Term Borrowings-Net off Current Maturity (Secured) | 7 A | 1,835,237 | 1,890,075 |
Liability for Gratuity & WPPF | 522,970 | 403,599 | |
Deferred Tax Liability | 1,110,352 | 963,377 | |
Current Liabilities and Provisions | 2,841,626 | 2,648,161 | |
Short Term Borrowings | 1,761,510 | 1,642,216 | |
Long Term Borrowings-Current Maturity | 7 B | 363,720 | 363,744 |
Creditors and other Payables | 530,720 | 523,798 | |
Accrued Expenses | 123,692 | 101,560 | |
Dividend Payable | 1,229 | 1,361 | |
Income Tax payable | 60,755 | 15,482 | |
TOTAL EQUITY AND LIABILITIES | 24,005,142 | 23,033,341 |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Comprehensive Income (Un-audited)
For the Half Year Ended June 30, 2012
Taka' 000 | |||||
Notes | Half-Year ended June 30, 2012 | Half-Year ended June 30, 2011 | 2nd Quarter (April-June) 2012 | 2nd Quarter (April-June) 2011 | |
Net Sales Revenue | 4,346,354 | 3,642,293 | 2,123,984 | 1,970,552 | |
Cost of Goods Sold | 8 | (2,367,543) | (1,920,911) | (1,151,431) | (1,011,947) |
Gross Profit | 1,978,811 | 1,721,382 | 972,553 | 958,605 | |
Operating Expenses : | (966,300) | (803,122) | (473,270) | (418,962) | |
Administrative Expenses | 9 | (150,882) | (111,902) | (77,265) | (60,733) |
Selling, Marketing and Distribution Expenses | 10 | (815,418) | (691,220) | (396,005) | (358,229) |
Profit from Operations | 1,012,511 | 918,260 | 499,283 | 539,643 | |
Other Income | 207,323 | 150,907 | 104,804 | 79,474 | |
Finance Cost | (329,725) | (266,391) | (169,469) | (134,648) | |
Profit Before Contribution to WPPF | 890,109 | 802,776 | 434,618 | 484,469 | |
Contribution to Workers' Profit | |||||
Participation/Welfare Funds | (42,386) | (38,227) | (20,696) | (23,070) | |
Profit Before Tax | 847,723 | 764,549 | 413,922 | 461,399 | |
Income Tax Expense | (234,318) | (193,306) | (107,829) | (142,806) | |
Profit After Tax | 613,405 | 571,243 | 306,093 | 318,593 | |
Other Comprehensive Income | - | - | - | - | |
Total Comprehensive Income | 613,405 | 571,243 | 306,093 | 318,593 | |
Earnings Per Share (EPS) | Tk. | 2.01 | 2.72 | 1.00 | 1.52 |
Number of shares used to compute EPS | |||||
(Note 11) | 304,639,050 | 209,806,509 | 304,639,050 | 209,806,509 |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Changes in Equity (Un-audited)
For the Period ended June 30, 2012
Half Year ended June 30, 2012
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, 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 | 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 |
Net Asset Value (NAV) per Share | Tk. | 58.08 |
Half Year ended June 30, 2011
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, 2011 | 2,098,065 | 5,269,475 | 1,689,637 | 294,951 | 1,534,646 | 5,087,313 | 15,974,087 |
Total Comprehensive Income | - | - | - | - | - | 571,243 | 571,243 |
Adjustment for Depreciation on Revalued Assets | - | - | - | - | (11,780) | 11,780 | - |
Adjustment for Deferred Tax on Revalued Assets | - | - | - | - | (52,666) | - | (52,666) |
As on June 30, 2011 | 2,098,065 | 5,269,475 | 1,689,637 | 294,951 | 1,470,200 | 5,670,336 | 16,492,664 |
Net Asset Value (NAV) per Share | Tk. | 78.61 |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Cash Flows (Un-audited)
For the Half-year ended June 30, 2012
Taka'000 | |||
Half-Year ended | Half-Year ended | ||
June 30, 2012 | June 30, 2011 | ||
Cash Flows from Operating Activities: | |||
Cash Receipts from Customers and Others | 4,300,864 | 3,568,439 | |
Cash Paid to Suppliers and Employees | (3,083,742) | (2,642,216) | |
Cash Generated from Operations | 1,217,122 | 926,223 | |
Interest Paid | (329,725) | (266,391) | |
Interest Received | 204,036 | 150,747 | |
Income Tax Paid | (88,647) | (72,351) | |
Net Cash Generated from Operating Activities | 1,002,786 | 738,228 | |
Cash Flows from Investing Activities: | |||
Acquisition of Property, Plant and Equipment | (704,325) | (533,794) | |
Intangible Assets | (21,207) | (33,981) | |
Disposal of Property, Plant and Equipment | 4,480 | - | |
Short Term Investment | (353,195) | (98,642) | |
Net Cash Used in Investing Activities | (1,074,247) | (666,417) | |
Cash Flows from Financing Activities: | |||
Net Increase / (Decrease) in Long Term Borrowings | (54,862) | (77,560) | |
Net Increase / (Decrease) in Short Term Borrowings | 119,294 | 19,443 | |
Ordinary Share Dividend | (132) | (131) | |
Net Cash Generated from Financing Activities | 64,300 | (58,248) | |
Increase / (Decrease) in Cash and Cash Equivalents | (7,161) | 13,563 | |
Cash and Cash Equivalents at Beginning of Period | 518,768 | 1,471,448 | |
Cash and Cash Equivalents at End of Period | 511,607 | 1,485,011 | |
Net Operating Cash Flow per Share | Tk. | 3.29 | 3.52 |
BEXIMCO PHARMACEUTICALS LTD.
Selected Notes to the Financial Statements (Un-audited)
For the Period ended June 30, 2012
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.
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, 2011 (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.
3. Property, Plant & Equipment
Taka'000 | ||
As at | As at | |
June 30, 2012 | December 31, 2011 | |
Cost / Revaluation | ||
Land | 3,302,102 | 3,300,277 |
Building and Other Constructions | 6,281,102 | 6,277,511 |
Plant & Machinery | 7,058,621 | 7,019,945 |
Furniture & Fixture | 147,331 | 139,429 |
Transport & Vehicle | 423,432 | 384,509 |
Office Equipment | 322,137 | 313,797 |
17,534,725 | 17,435,468 | |
Less :Accumulated Depreciation | (3,827,057) | (3,543,852) |
Written Down Value | 13,707,668 | 13,891,616 |
Capital Work in Progress | 2,452,726 | 1,853,877 |
Carrying Value | 16,160,394 | 15,745,493 |
4. Inventories
Taka'000 | ||
As at | As at December 31, | |
June 30, 2012 | 2011 | |
Finished Goods | 699,633 | 639,242 |
Raw and Packing Material (Including Work in Process and Transit) | 1,644,749 | 1,599,450 |
Sample & Others | 52,563 | 53,153 |
2,396,945 | 2,291,845 |
5. Loans, Advances and Deposits
Taka'000 | ||
As at | As at December 31, | |
June 30, 2012 | 2011 | |
Clearing & Forwarding | 24,482 | 19,955 |
VAT | 217,681 | 229,820 |
Security Deposit and Earnest Money | 16,020 | 15,233 |
Capital Expenditure / Project | 12,195 | 14,725 |
Expenses | 95,836 | 47,200 |
Advance against Salary | 74,706 | 56,644 |
Motor Cycle | 111,199 | 110,197 |
Raw & Packing Material | 263,397 | 282,346 |
Others | 68,153 | 64,201 |
883,669 | 840,321 |
6. Cash and Cash Equivalents
Taka'000 | ||
As at | As At December 31, | |
June 30, 2012 | 2011 | |
Cash In Hand, Current & FC Accounts | 73,145 | 107,783 |
Imprest Cash | 1,101 | 1,116 |
FDR Account | 437,361 | 409,869 |
511,607 | 518,768 |
7. Long Term Borrowings
Taka'000 | ||
As At | As at December 31, | |
June 30, 2012 | 2011 | |
A. Net off Current Maturity (Secured) | ||
Project Loan | 1,677,388 | 1,696,629 |
Interest and PAD Block | - | 9,205 |
Obligation Under Finance lease | 157,849 | 184,241 |
1,835,237 | 1,890,075 | |
B. Current Maturity | ||
Project Loan | 250,000 | 250,000 |
Interest and PAD Block | 25,553 | 30,000 |
Obligation Under Finance lease | 88,167 | 83,744 |
363,720 | 363,744 |
8. Cost of Goods Sold
Taka'000 | ||
Half-Year ended | Half-Year ended | |
June 30, 2012 | June 30, 2011 | |
Materials | 1,745,854 | 1,416,854 |
Factory Overhead | 361,255 | 280,294 |
Depreciation | 260,434 | 223,763 |
2,367,543 | 1,920,911 |
9. Administrative Expenses
Taka'000 | ||
Half-Year ended | Half-Year ended | |
June 30, 2012 | June 30, 2011 | |
Salary & Allowances | 68,214 | 55,929 |
Repairs & Maintenance | 10,267 | 7,368 |
Travelling & Conveyance | 8,425 | 7,323 |
AGM, Company Secretarial Expenses and Regulatory Fees | 24,409 | 16,147 |
Depreciation | 10,072 | 8,654 |
Other Expenses | 29,495 | 16,481 |
150,882 | 111,902 |
10. Selling, Marketing and Distribution Expenses
Taka'000 | ||
Half-Year ended | Half-Year ended | |
June 30, 2012 | June 30, 2011 | |
Salary & Allowances | 254,680 | 208,364 |
Travelling & Conveyance | 112,038 | 99,729 |
Market Research & New Products | 18,624 | 11,962 |
Sample, Literature & Promotional Expenses | 235,531 | 204,802 |
Delivery Expense | 116,679 | 98,341 |
Depreciation and Amortization | 23,380 | 14,834 |
Other Expenses | 54,486 | 53,188 |
815,418 | 691,220 |
11. Dividend for 2011
The Shareholders of the company has approved 21% stock dividend for the year 2011 in the annual general meeting held on June 30, 2012. The company consistently follows the policy of recognising proposed dividend after its approval by the shareholders in the annual general meeting. Hence, the proposed dividend for 2011 has been accounted for in this interim financial statements. EPS has been computed taking into account the additional number of shares issued.