Beximco Pharma Regulatory News (BXP)

RNS Number : 2063Q

Beximco Pharmaceuticals Ltd

30 July 2010

 

BEXIMCO PHARMACEUTICALS LTD.

30th July, 2010

Half Year Results - 2010

 

Beximco Pharmaceuticals Limited ("BPL" or "Company"; AIM Symbol: BXP) today announces its results for the half year to 30 June 2010.

 

Highlights 

 

Half year financial highlights

·; Net sales increased by 28% to Bangladesh Taka ("BDT") 2,968.7m / £27.3m (2009: BDT 2,314.7m / £21.3m)

o Domestic sales increased 28% to BDT 2,825.9m / £26.0m (H1 2009: BDT 2,207.9m / £20.3m)

o Export sales increased 33.6% to BDT 142.7m / £1.3m (H1 2009: BDT 106.8m / £0.98m)

·; Profit before tax increased by 83% to BDT 697.3m / £6.4m (H1 2009: BDT 381.5m / £3.5m)

·; EPS increased by 22% to BDT 2.52 / 2.3 pence (2009: BDT 2.06 / 1.9 pence)

·; 41,000,000 fully convertible, six-month 5% Preference Shares of BDT 100 (£0.92) each converted. The first conversion, representing 50% of the total amount, occurred in February 2010 at a conversion price of BDT 126.66 / £1.17 and the remainder were converted in May 2010 at a conversion price of BDT 135.59 / £1.25

 

Second quarter 2010 highlights

·; Net sales increased by 34% to BDT 1,642.0m / £15.1m (2009: BDT 1,225.9m / £11.3m)

·; Profit before tax increased by 65% to BDT 379.3m / £3.5m (2009: BDT 230.2m / £2.1m)

 

 

Operational highlights

·; 35 new products registered in overseas markets

·; 5 new markets entered: The Netherlands Antilles, El Salvador, Benin, Sudan and Tonga (Pacific Islands)

·; 11 generics in a total of 28 products launched including 7 Ophthalmics, 4 injectables and 3 HFA-based inhalers

o HFA inhalers and Napa Extend (a formulation of Paracetamol 665 mg) launched for the first time in Bangladesh

·; Remaining three lines of the new Oral Solid Dosage (OSD) facility are being commissioned

·; New Metered Dose Inhaler (MDI) facility is nearing completion

·; Other projects including Amino Acid (AA) and ION (Injectable, Ophthalmic and Nebulizer) expansion are nearing completion

·; The Company received the prestigious Bangladeshi Superbrands Award for 2010-11

 

 

Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:

 

"We strongly believe that we have significant scope to grow both in domestic and overseas markets, and our investments in expanding capacity and upgrading our facilities will provide the necessary impetus for long-term sustainable growth. Our new OSD facility will have increased capacity, with an additional three production lines commissioned, and the construction of our new MDI facility is nearing completion which will further expand capacity, enabling us to cater to growing demand.

 

"As we seek to deliver our ambitious long-term growth targets, we have delivered excellent results during the first half of 2010, achieving impressive sales growth in both domestic and export markets.

 

"We remain increasingly focused on expanding in international markets. As we increase our manufacturing capacity, we continue to successfully register products in all our existing export markets. 

"As competitiveness and global standards are prerequisite for success, we have taken steps to reduce costs and optimize resources to remain competitive in the marketplace. We have also renewed our focus on R&D and Regulatory Affairs in order to achieve excellence in these areas and to capitalize on the opportunities in global generics."

 

The half yearly accounts can be viewed at the Company's website: www.beximcopharma.com

 

(An exchange rate of £ 1 = Taka 108.55 has been used in this announcement.)

 

For further enquiries please contact:

 

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 861 9151, ext.2080

 

Libertas Capital Corporate Finance

Jakob Kinde / Anthony Rowland Tel: +44 (0)20 7569 9650 

 

Financial Dynamics

Jonathan Birt / Susan Quigley 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 2,400 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.

 

END

 

 

 

BEXIMCO PHARMACEUTICALS LTD.

Statement of the Managing Director

 

 

 

Dear Shareholders,

 

 

We are pleased to announce the un-audited financial results for the half year ended 30th June 2010.

 

The company performed strongly during the first half of the year and achieved net domestic sales of BDT 2,825.9m (£26.0m) with impressive 28% growth over the corresponding period of 2009. This performance was largely driven by strong growth of key brands, as well as the excellent response to our 28 new products launched during the period.

 

Export turnover was BDT 142.7m (£1.3m) which is 33.6 % higher on comparable basis. During the first half, the company entered into 5 new markets and registered 35 products overseas.

 

The company earned a pre-tax profit of BDT 697.3m (£6.4m) with EPS of BDT 2.52 (2.3 pence) (diluted) against BDT 381.5m (£3.5m) and BDT 2.06 (1.9 pence) respectively, in the previous year.

 

BPL continues to invest in expanding capacities to capitalize on the opportunities in global generic markets. The remaining three lines of our new Oral Solid Dosage (OSD) facility are being commissioned and the new MDI facility is also nearing completion. The progress of additional expansion projects are also on track.

 

We are pleased with the progress achieved in the first half of 2010 and our achievement during the period reinforces our focus on different strategic priorities which will enable us to deliver a broader range of medicines to our patients and greater value to shareholders.

 

 

Nazmul Hassan

Managing Director

 

 

 

BEXIMCO PHARMACEUTICALS LTD.

Balance Sheet (Unaudited)

As at June 30, 2010

 

 

				Taka '000
	Notes	As at June 30, 2010		As at Dec 31, 2009
ASSETS
Non-Current Assets		13,608,207		12,975,195
Property, Plant and Equipment- Carrying Value	3	13,585,636		12,966,587
Intangible Assets		19,689		5,726
Investment in Shares		2,882		2,882
Current Assets		7,127,497		6,916,738
Inventories	4	1,908,778		1,722,953
Spares & Supplies		271,386		242,035
Accounts Receivable		823,794		694,112
Loans, Advances and Deposits	5	844,842		699,204
Short Term Investment		1,805,516		2,500,000
Cash and Cash Equivalents	6	1,473,181		1,058,434
TOTAL ASSETS	Tk.	20,735,704		19,891,933
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' Equity		15,513,980		10,885,707
Issued Share Capital		2,098,065		1,511,493
Share Premium		5,276,839		1,489,750
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		1,603,957		1,617,362
Retained Earnings		4,550,531		4,282,514
Non-Current Liabilities		2,672,844		6,684,775
Long Term Borrowing-Net of Current Maturity (Secured)	7 A	1,925,172		1,924,933
Fully Convertible, 5% Dividend, Preference Share		-		4,100,000
Liability for Gratuity & WPPF		305,784		307,426
Deferred Tax Liability		441,888		352,416
Current Liabilities and Provisions		2,548,881		2,321,451
Short Term Borrowing		1,681,943		1,451,326
Long Term Borrowing-Current Maturity	7 B	335,672		308,820
Creditors and other Payables		365,685		409,898
Accrued Expenses		118,614		79,095
Dividend Payable		1,278		1,728
Income Tax Payable		45,690		70,584
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	Tk.	20,735,704		19,891,933

 

 

 

 

BEXIMCO PHARMACEUTICALS LTD.

Profit and Loss Account (Unaudited)

For the Half-year ended June 30, 2010

 

 

								Taka '000
	Notes	Half-Year ended June 30, 2010		Half-Year ended June 30, 2009		2nd Quarter (April-June) 2010		2nd Quarter (April-June) 2009
Net Sales Revenue		2,968,654		2,314,712		1,642,053		1,225,907
Cost of Goods Sold	8	(1,484,263)		(1,228,278)		(789,784)		(659,792)
Gross Profit		1,484,391		1,086,434		852,269		566,115
Operating Expenses:		(702,569)		(660,348)		(404,610)		(361,304)
Administrative Expenses	9	(102,846)		(97,949)		(59,739)		(50,113)
Selling and Distribution Expenses	10	(599,723)		(562,399)		(344,871)		(311,191)
Profit from Operations		781,822		426,086		447,659		204,811
Other Income		314,314		113,392		119,398		108,342
Finance Cost		(210,173)		(138,888)		(117,571)		(71,441)
Preference Share Dividend		(153,750)		-		(51,250)		-
Profit before Contribution to WPPF		732,213		400,590		398,236		241,712
Contribution to Workers'
Profit Participation/ Welfare Funds		(34,867)		(19,076)		(18,963)		(11,510)
Profit before Tax		697,346		381,514		379,273		230,202
Income Tax		(169,073)		(70,490)		(68,962)		(43,254)
Profit after Tax		528,273		311,024		310,311		186,948
Earnings Per Share (EPS)		2.52		2.06		1.48		1.24
Number of shares used to compute EPS		209,806,509		151,149,296		209,806,509		151,149,296

 

 

 

BEXIMCO PHARMACEUTICALS LTD.

Statement of Changes in Equity (Unaudited)

For the period ended June 30, 2010

 

 

							Taka '000
Half-Year ended June 30, 2009
	Share Capital	Share Premium	Excess of Issue Price over Face Value of GDRs	Capital Reserve	Revaluation Surplus	Retained Earnings	Total
Opening Balance on 01.01.2009	1,259,577	1,489,750	1,689,637	294,951	1,711,175	4,005,112	10,450,202
Net Profit for the Period	-	-	-	-	-	311,024	311,024
Cash Dividend of Previous year (2008)	-	-	-	-	-	(125,958)	(125,958)
Bonus Share	251,916	-	-	-	-	(251,916)	-
At the end of June 2009 Tk.	1,511,493	1,489,750	1,689,637	294,951	1,711,175	3,938,262	10,635,268
Half-Year ended June 30, 2010
	Share Capital	Share Premium	Excess of Issue Price over Face Value of GDRs	Capital Reserve	Revaluation Surplus	Retained Earnings	Total
Opening Balance on 01.01.2010	1,511,493	1,489,750	1,689,637	294,951	1,617,362	4,282,514	10,885,707
Net Profit for the Period	-	-	-	-	-	528,273	528,273
Preference Share Converted into Ordinary Share	312,911	-	-	-	-	-	312,911
Premium on Convertion of Preference Share	-	3,787,089	-	-	-	-	3,787,089
Bonus Share	273,661	-	-	-	-	(273,661)	-
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(13,405)	13,405	-
At the end of June 2010 Tk.	2,098,065	5,276,839	1,689,637	294,951	1,603,957	4,550,531	15,513,980

 

 

 

BEXIMCO PHARMACEUTICALS LTD.

Cash Flow Statement (Unaudited)

For the Half-year ended June 30, 2010

 

 

				Taka '000
	Notes	Half-Year ended June 30, 2010		Half-Year ended June 30, 2009
Cash Flows from Operating Activities :
Cash Receipts from Customers and Others		3,153,285		2,167,530
Cash Paid to Suppliers and Employees		(2,400,045)		(1,969,896)
Cash Generated from Operations		753,240		197,634
Interest Paid		(210,173)		(138,888)
Income Tax Paid		(104,495)		(33,160)
Net cash Generated from Operating Activities		438,572		25,586
Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment (net of IDCP)		(807,854)		(236,890)
Sale of Shares		-		124,000
Intangible Assets		(13,963)
Short Term Investment		694,484		-
Disposal of Property, Plant and Equipment		-		62
Net Cash used in Investing Activities		(127,333)		(112,828)
Cash Flows from Financing Activities :
Net (Decrease)/Increase in Long Term Borrowings		27,092		(90,623)
Net (Decrease) /Increase in Short Term Borrowings		230,617		167,104
Preference Share Dividend		(153,750)		-
Ordinary Share Dividend		(450)		(1,198)
Net Cash Generated from Financing Activities		103,509		75,283
Increase/(Decrease) in Cash and Cash Equivalents		414,748		(11,959)
Cash and Cash Equivalents at Beginning of Period		1,058,433		73,648
Cash and Cash Equivalents at End of Period	Tk.	1,473,181		61,689

 

 

 

 

BEXIMCO PHARMACEUTICALS LTD.

Selected Notes to the Financial Statements (Unaudited)

For the Period ended June 30, 2010

 

 

1 Status and Activities

Beximco Pharmaceuticals Limited (BPL/the Company) is a Public Limited Company incorporated in Bangladesh in 1976. The company is listed with 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 and life saving intravenous Fluids which it sells in the local as well as international markets.

 

 

2 Principal Accounting Policies

 

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, 2009 (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) including International Accounting Standards (IASs). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where necessary, the comparatives have been reclassified or extended from the Half Yearly Report of 2009 to take into account any presentational changes made in the Annual Financial Statements or in the Half Yearly Report 2010. 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.

 

 

				Taka '000
		As at June 30, 2010		As at Dec 31, 2009
3 Property, Plant and Equipment
Cost / Revaluation
Land		3,277,506		3,277,506
Building and Other Constructions		5,509,496		5,504,513
Plant & Machinery		5,735,159		4,960,206
Furniture & Fixture		105,937		101,631
Transport & Vehicle		203,176		150,535
Office & Lab Equipment		355,915		278,030
		15,187,189		14,272,421
Less : Accumulated Depreciation		(2,843,584)		(2,654,779)
Written Down Value		12,343,605		11,617,642
Capital Work in Progress		1,242,031		1,348,945
Carrying Value	Tk.	13,585,636		12,966,587

 

 

				Taka '000
		As at June 30, 2010		As at Dec 31, 2009
4 Inventories
Finished Goods		469,538		554,393
Materials
(Including Work in Process and Transit)		1,400,434		1,141,666
Sample & Others		38,806		26,894
	Tk.	1,908,778		1,722,953
5 Loans, Advances and Deposits
Motor Cycle Loan		123,205		124,549
Security and Other Deposits		39,435		34,832
Prepaid VAT		196,741		193,432
Advance for Capital Expenditure		95,043		65,305
Advance for Expense		62,202		29,695
Salary Advance		63,711		58,797
Advance to Suppliers including C & F Agents		234,054		175,489
Others		30,451		17,105
	Tk.	844,842		699,204
6 Cash and Cash Equivalents
Cash in Hand , Transit & Bank		72,090		57,342
Imprest Cash		1,091		1,091
FDR		1,400,000		1,000,000
	Tk.	1,473,181		1,058,433
7 Long Term Borrowing
A Non Current Maturity
Project Loan		1,697,391		1,723,033
Interest and PAD Block		61,189		81,384
Obligation under Finance Lease		166,592		120,516
	Tk.	1,925,172		1,924,933
B Current Maturity
Project Loan		250,000		187,500
Interest and PAD Block		47,700		77,899
Obligation under Finance Lease		37,972		43,421
	Tk.	335,672		308,820

 

 

				Taka '000
		Half-Year ended June 30, 2010		Half-Year ended June 30, 2009
8 Cost of Goods Sold
Materials		1,094,559		946,153
Factory Overhead		225,518		176,183
Depreciation		164,186		105,942
	Tk.	1,484,263		1,228,278
9 Administrative Expenses
Salary & Allowances		50,088		48,711
Fuel, Repairs & Office Maintenance		7,056		6,670
Travelling & Conveyance		6,636		3,546
AGM and Company Secretarial Expenses		15,176		17,927
Other Expenses		14,938		16,334
Depreciation		8,952		4,761
	Tk.	102,846		97,949
10 Selling and Distribution Expenses
Salary & Allowances		177,994		164,630
Travelling & Conveyance		85,950		84,976
Market Research & New Products		10,542		9,066
Sample, Literature & Promotional Expenses		185,711		177,060
Delivery Commission		78,194		63,391
Depreciation		15,666		8,333
Other Expenses		45,666		54,943
	Tk.	599,723		562,399

 

 

11 Dividend for 2009

The Board of Directors of the company approved 15% stock dividend for the year 2009 in the Annual General Meeting held on June 15, 2010. The company consistently follows the policy of recognising proposed dividend after its approval by the shareholders.

 

 

 

 

 

 

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