Beximco Pharma Regulatory News (BXP)

31 Jul 2006 07:02

Beximco Pharmaceuticals Ltd31 July 2006 BEXIMCO PHARMACEUTICALS LTD. 31st July 2006 Half Year Results - 2006 Beximco Pharmaceuticals Limited (AIM Symbol: BXP), the leading drug manufacturerin Bangladesh, today announces its results for the six months ended 30th June2006. Highlights Products • 34 products launched across a range of therapeutic classes, of which 13 were first time launches in the Bangladesh Pharmaceutical market • Signed contracts with agents in four new overseas markets for registration and distribution of products • Commenced exports to Cambodia with first products delivered in June Corporate • Successfully installed and commissioned two lines of the new Oral Solid Dosage (OSD) plant built to USFDA standards. The validation of the equipment and the facility is now in progress and production of the validated batches are expected to be completed by the end of August 2006 • Project to convert Metered Dose Inhaler (MDI) plant to manufacture HFA inhalers is progressing as per schedule and is expected to be operational by the first week of August 2006 • The API, Small Volume Parenterals, Ophthalmics and Nebulizer Solution projects are all on target • Further issue of 8,175,750 GDRs in May 2006 raising £6.5 million to finance Beximco's two OSD lines for the USFDA plant as well as new long term investment projects Financial • Net sales increased by 28% to Tk. 1836.8 million • Profit before tax increased by 12.1% to Tk. 287.1 million • Net profit increased by 8.6% to Tk. 251.2 million • Earnings per share of Tk. 5.20 per share Nazmul Hassan, CEO of Beximco Pharmaceuticals, commented: "We have made good progress this year with a further 34 products launched in thedomestic market and we continue our international expansion with severaldistribution deals signed in four new overseas markets. We are extremely pleasedwith the progress made in our new USFDA manufacturing plant, with two new linessuccessfully installed and the production line trials operating as expected andon target to complete in August this year. We are continuing to meet key milestones for all of our on-going projects and weare on track and committed to achieve our 2006 targets." The half yearly accounts can be viewed at the Company's website:www.beximcopharma.com For further enquiries please contact: Beximco PharmaNazmul Hassan, CEOTel: +880 2 861 9151, ext.2080 Libertas CapitalAamir Quraishi/Charles GoodfellowTel: +44 (0)20 7569 9650 Financial DynamicsDavid Yates / John GilbertTel: +44 (0)20 7269 7169 Notes to Editors About Beximco Pharmaceuticals Limited Founded in 1976 and based in Dhaka, Bangladesh, BPL manufactures and sellsgeneric pharmaceutical formulation products, active pharmaceutical ingredientsand intravenous fluids. The Company also undertakes contract manufacturing forGlaxoSmithKline and is about to commence manufacturing for Novartis. TheCompany operates from a 20 acre site in Dhaka and currently employs over 1800staff. The Company's products are sold to retail outlets, medical institutions andother pharmaceutical manufacturers in Bangladesh, in regional markets such asPakistan, Nepal and Myanmar and in other markets overseas, principally in EastAfrica (including Kenya) and South East Asia (including Singapore). END BEXIMCO PHARMACEUTICALS LTD.CHIEF EXECUTIVE OFFICER'S STATEMENT We are pleased to publish the interim financial results for the half year ended30th June 2006. Financial Results The Company has achieved sales of Tk. 1,836.79 million showing significant salesgrowth of 28% compared to the same period last year. Gross profit, as well asnet profit before tax, in absolute value has increased by 24.4% and 12.1%respectively. The Bangladeshi economy has experienced a significant devaluationof domestic currency this half, against the US Dollar it has droppedapproximately 10% in one year, but the Company has successfully managed tominimize the negative impact of such currency devaluation. This half, theCompany earned a pre-tax profit of Tk. 287.1 million compared to Tk. 256.3million this time last year. EPS stood at Tk. 5.20 after the issue of new GDRs. Key Drivers During the first half of this year, the Company has successfully launched 34products across a range of therapeutic classes. Neoceptin R, Napa, Arixon,Dexaqua, Tofen, Bextrum, Amdocal, Tycil, Dexoride, Ultrafen continue to havestrong demand and they remain to be the main sales drivers for Beximco. TheCompany has continued its international expansion by signing contracts withagents in four new overseas markets for the registration and distribution of itsproducts, and Beximco has also commenced exporting to Cambodia, with the firstproducts delivered in June. Development on Projects • The Company has successfully installed and commissioned two lines of the new Oral Solid Dosage (OSD) plant built to USFDA standards. • The project to convert the Metered Dose Inhaler (MDI) plant to manufacture HFA inhalers is progressing as per schedule and is expected to be operational by the first week of August 2006. • The API, Small Volume Parenterals, Ophthalmics & Nebulizer Solution projects are also on target Settlement with Shamil Bank of Bahrain EC As per the settlement agreement reached with the Shamil Bank of Bahrain EC, theCompany has paid a second instalment which will take effect during the reportedperiod. Issue of GDRs In May 2006, the Company had further issued 8,175,750 GDRs at GBP 0.80 tofinance its ongoing projects as well as new long term investment projects. Nazmul HassanChief Executive Officer Beximco Pharmaceuticals Ltd.Balance Sheet (Unaudited)As at 30th June, 2006 Amount in K BDT Notes As at 30th June As at 31st Growth-% 2006 December 2005ASSETSNon-Current Assets 7,896,710 7,449,631 6.00 ______ ______ ______Property, Plant and Equipment- Carrying Value 3 7,859,554 7,412,475 6.03Investment in Shares 37,156 37,156 - ______ ______ ______ Current Assets 3,876,658 3,495,849 10.89 ______ ______ ______Inventories 4 1,664,146 1,683,722 (1.16)Accounts Receivable 5 666,443 779,799 (14.54)Loans, Advances and Deposits 6 580,962 603,765 (3.78)Cash and Cash Equivalents 7 965,107 428,563 125.20 ______ ______ ______ TOTAL ASSETS Tk. 11,773,368 10,945,480 7.56 ______ ______ ______ EQUITY AND LIABILITIES Shareholders' Equity 7,730,881 6,820,925 13.34 ______ ______ ______Issued Share Capital 1,040,973 959,216 8.52Share Premium 1,489,750 1,489,750 -Excess of Issue Price over Face Value of GDRs 1,690,053 969,175 74.38Capital Reserve 294,951 294,951 -Tax-Holiday Reserve 414,549 414,549 -Retained Earnings 2,800,605 2,693,284 3.98 ______ ______ ______ Non-Current Liabilities 1,533,928 1,622,730 (5.47) ______ ______ ______Long Term Borrowing-Net off Current Maturity 8 A 1,275,290 1,387,456 (8.08)(Secured)Liability for Gratuity & WPPF 9 218,776 190,053 15.11Deferred Tax Liability 39,862 45,221 (11.85) ______ ______ ______ Current Liabilities and Provisions 2,508,559 2,501,825 0.27 ______ ______ ______Short Term Borrowing from Banks 10 1,028,568 1,062,011 (3.15)Long Term Borrowing-Current Maturity 8 B 898,181 1,066,031 (15.75)Creditors and other Payables 290,189 216,661 33.94Accrued Expenses 99,048 101,860 (2.76)Dividend Payable 144,358 830 17,283.27Income Tax Payable 48,215 54,431 (11.42) ______ ______ ______ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Tk. 11,773,368 10,945,480 7.56 ______ ______ ______ Beximco Pharmaceuticals Ltd.Profit and Loss Account (Unaudited)For the Half-year ended 30th June, 2006 Amount in K BDT Notes Half-Year ended Half-Year ended Growth-% 30th June 2006 30th June 2005 Net Sales Revenue 1,836,787 1,433,877 28.10 Cost of Goods Sold 11 (979,347) (744,357) 31.57 ______ ______ ______Gross Profit 857,440 689,520 24.35 Operating Expenses : (473,817) (329,087) 43.98 ______ ______ ______Administrative Expenses 12 (66,743) (46,894) 42.33Selling and Distribution Expenses 13 (407,074) (282,193) 44.25 ______ ______ ______Profit from Operations 383,623 360,433 6.43 Other Income 15,240 11,982 27.18Finance Cost (97,373) (103,347) (5.78) ______ ______ ______Net Profit Before Contribution to WPPF 301,490 269,068 12.05 Contribution to Workers' Profit Participation/ (14,357) (12,813) 12.05Welfare Funds ______ ______ ______Net Profit Before Tax 287,133 256,255 12.05Income Tax (35,931) (24,846) 44.61 ______ ______ ______Net Profit After Tax Transferred to Statement of 251,202 231,409 8.55Changes in Equity ______ ______ ______ Earnings Per Share (EPS)-Annualized 5.20 6.10 (14.70)Number of Shares used to compute EPS 96,615,941 75,921,563 27.26 ______ ______ ______ BEXIMCO PHARMACEUTICALS LTD.Statement of Changes in Equity (Unaudited)For the Half-year ended 30th June, 2006 Amount in K BDT Half-Year ended Half-Year ended 30th June 2006 30th June 2005 Shareholders Equity at Beginning of Period 6,820,925 4,834,748Net Profit for the period 251,202 231,409Cash Dividend of Prior Period (143,882) (27,988)Issue of Shares against GDRs 802,636 -Exchange of BPL Shares for BIL Shares - 59,513Capital Reserve on amalgamation of BIL with BPL - 314,873Prior Years' adjustment on Capitalization of Leases - 34,146 ______ ______Shareholders Equity at the end of Period Tk. 7,730,881 5,446,701 ______ ______ Number of Ordinery Shares 10,409,731 7,592,156Par Value of Shares 10 10Net Asset Value Per Share (NAV) 74.27 71.74 Beximco Pharmaceuticals Ltd.Cash Flow Statement (Unaudited)For the Half-year ended 30th June, 2006 Amount in K BDT Half-Year ended Half-Year ended Growth-% 30th June 2006 30th June 2005Cash Flows from Operating Activities : ______ ______ ______Cash Receipts from Customers and Others 1,965,313 1,469,513 33.74Cash Paid to Suppliers and Employees (1,261,566) (1,129,293) 11.71 ______ ______ ______Cash Generated from Operations 703,747 340,220 106.85 Interest Paid (97,373) (95,933) 1.50Income Tax Paid (47,506) (11,511) 312.68 ______ ______ ______Net cash Generated from Operating Activities 558,868 232,776 140.09 Cash Flows from Investing Activities : ______ ______ ______Acquisition of Property, Plant and Equipment (481,893) (236,212) 104.01Disposal of Property, Plant and Equipment 138 674 (79.58)Net cash Used in Investing Activities (481,755) (235,538) 104.53 Cash Flows from Financing Activities : ______ ______ ______Net (Decrease)/Increase in Long Term Borrowings (309,406) 6,073 (5,194.88)Issue of Shares against GDR 81,757 - -Excess of Issue Price Net over Face Value of GDRs 720,878 - -Net (Decrease) in Short Term Borrowing from Banks (33,443) (5,917) 465.17Dividend Paid (355) (1,142) (68.90) ______ ______ ______Net cash Generated from Financing Activities 459,431 (986) (46,661.59) ______ ______ ______Increase/(Decrease) in Cash and Cash Equivalents 536,544 (3,748) (14,416.54)Cash and Cash Equivalents at Beginning of Period 428,563 10,519 3,974.08 ______ ______ ______Cash and Cash Equivalents at End of Period Tk. 965,107 6,771 14,152.40 ______ ______ ______ Beximco Pharmaceuticals Ltd.Selected Notes to the Financial Statements (Unaudited)For the Period ended 30th June, 2006 Amount in K BDT 1 Status and Activities Beximco Pharmaceuticals Limited (BPL/the Company) is a public companyincorporated in Bangladesh in 1976. The principal activities of the company aremanufacturing and marketing of formulation products, bulk chemicals and IVfluids. The shares of the company are traded in Dhaka and Chittagong StockExchanges of Bangladesh and also in the AIM of London Stock Exchange. 2 Principal Accounting Policies Basis of Preparation of Financial Statements These Financial Statements are in accordance with BAS 34 "Interim FinancialReporting"; and the Securities and Exchange Rules 1987. These interim financialstatements should be read in conjunction with the Financial Statements for theyear ended December 31, 2005 (hereafter referred to as the "Annual FinancialStatements"), as they provide an update to previously reported information. The accounting policies used are consistent with those used in the AnnualFinancial Statements. The Company followed principal accounting policies(including International Accounting Standards as adopted in Bangladesh, commonlyknown as BAS) consistantly except that it has not yet adopted BAS 21 -" Effectsof Changes in Foreign Exchange Rates" as that conflicts with the provisions ofThe Companies Act, 1994. The presentation of the Interim Financial Statements isconsistent with the Annual Financial Statements. Where necessary, thecomparatives have been reclassified, extended or consized from the previouslyreported half yearly report of 2005 to take into account any presentationalchanges made in the Annual Financial Statements or in the half yearly report2005. The preparation of the Interim Financial Statements requires management to makeestimates and assumptions that affect the reported amounts of revenues,expenses, assets and liabilities at the date of the Interim FinancialStatements. If in the future such estimates and assumptions, which are based onmanagement's best judgment at the date of the Interim Financial Statements,deviate from the actual, the original estimates and assumptions will be modifiedas appropriate in the period in which the circumstances change. As at Jun 30, As at Dec 31, 2006 2005 3 Property, Plant and Equipment Cost Land 1,225,106 1,199,314 Building and Other Constructions 602,637 596,284 Plant & Machinery 1,299,014 1,233,272 Furniture & Fixture 57,879 53,234 Transport & Vehicle 125,409 105,799 Office Equipment 191,232 176,964 3,501,277 3,364,867 Less :Accumulated Depreciation (1,275,478) (1,211,494) Written Down Value 2,225,799 2,153,373 Capital Work in Progress 5,633,755 5,259,102 ______ ______ Carring Value Tk. 7,859,554 7,412,475 ______ ______ 4 Inventories Finished Goods 370,246 378,745 Raw and Packing Material (Including Work in Process and 1,165,719 1,187,664 Transit) Spares & Others 128,181 117,313 ______ ______ Tk. 1,664,146 1,683,722 ______ ______ As at Jun 30, As at Dec 31, 2006 2005 5 Accounts Receivable I & I Services Ltd. 608,164 683,362 Export Receivable - 48,424 Others 58,279 48,013 ______ ______ Tk. 666,443 779,799 ______ ______ 6 Loans, Advances and Deposits Motor Cycle Advance 60,554 68,812 Deposits 43,314 38,441 VAT 124,457 128,957 Employees 33,832 28,039 Advance to Suppliers including C &F Agents 257,912 275,008 Others 60,893 64,508 ______ ______ Tk. 580,962 603,765 ______ ______ 7 Cash and Cash Equivalents Cash in Hand 1,932 1,311 Cash at Banks 963,175 427,252 ______ ______ Tk. 965,107 428,563 ______ ______ 8 Long Term Borrowing A Non Current Maturity Project Loan 1,028,196 1,182,786 Interest and PAD 191,318 148,209 Obligations under other Finance Lease 55,776 56,461 ______ ______ Tk. 1,275,290 1,387,456 ______ ______ B Current Maturity Project Loan 343,790 - Interest and PAD 40,902 92,680 Obligation to Shamil Bank under Lease 453,593 921,330 Obligations under other Finance Lease 59,896 52,021 ______ ______ Tk. 898,181 1,066,031 ______ ______ 9 Liability for Gratuity & WPPF Gratuity Payable 90,360 83,598 Loan from Workers' Profit Participation / Welfare Funds 128,416 106,455 ______ ______ Tk. 218,776 190,053 ______ ______ 10 Short Term Borrowing from Banks Janata Bank 938,119 952,856 Citibank NA 40,449 40,854 Standard Chartered Bank 0 18,301 IPDC 50,000 50,000 ______ ______ Tk. 1,028,568 1,062,011 ______ ______ Half year ended Half year ended Jun 30, 2006 Jun 30, 2005 11 Cost of Goods Sold Raw and Packing Material 801,584 597,005 Factory Overhead 122,710 93,019 Depreciation 55,053 54,333 ______ ______ Tk. 979,347 744,357 ______ ______ 12 Administrative Expenses Salary & Allowances 32,880 23,983 Repairs & Maintenance 3,585 4,224 Traveling & Conveyance 5,223 3,192 AGM and Company Secretarial Expenses 11,922 5,002 Other Expenses 9,402 9,848 Depreciation 3,731 645 ______ ______ Tk. 66,743 46,894 ______ ______ 13 Selling and Distribution Expenses Salary & Allowances 121,673 90,902 Traveling & Conveyance 61,153 46,766 Market Research & New Products 14,900 9,884 Promotional Expenses including Sample & Literature 109,200 71,243 Distribution Commission 54,438 29,213 Depreciation 5,352 2,367 Other Expenses 40,359 31,818 ______ ______ Tk. 407,074 282,193 ______ ______ Nazmul Hassan Ali NawazChief Executive Officer Chief Financial Officer This information is provided by RNS The company news service from the London Stock Exchange