Last checked at 23 Jun 2020 07:00
23 June 2020
BEXIMCO PHARMACEUTICALS LTD.
Q3 Financial Results and Business Update
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, announces its unaudited financial results for the third quarter and nine months ended 31 March 2020, and provides a business update.
Financial highlights
Nine months (consolidated)
· Net sales increased 13.3% to Bangladesh Taka ("BDT") 19,105.6m / £181.0m (2018-19: BDT
16,866.4m / £153.6m)
· Domestic sales increased 14.1% to BDT 17,063.3m / £161.6m (2018-19: 14,948.6m / £136.2m)
· Export sales increased 6.5% to BDT 2,042.3m / £19.3m (2018-19: BDT 1,917.8m / £17.5m)
· Profit after tax increased 18.3% to BDT 2,644.7m / £25.0m (2018-19: BDT 2,235.8m / £20.4m)
Third quarter
· Net sales increased 14.8% to BDT 6,610.1m / £62.6m (2018-19: BDT 5,756.6m / £52.4m)
· Domestic sales increased by 17.5% to BDT 5961.5m / £56.5m (2018-19: BDT 5074.5/ £46.2m)
· Export sales declined by 4.9% to BDT 648.6m / £6.1m (2018-19: BDT 682.0m / £6.2m)
· Profit after tax increased 21.5% to BDT 909.3m / £8.6m (2018-19: BDT 748.6m / £6.8m)
Business Update
The COVID-19 pandemic continues to impact the healthcare service across Bangladesh, which has seen a significant reduction as visits to hospitals and clinics have declined. Beximco Pharma's priority remains to ensure the health and safety of its employees. Where possible, employees are working remotely and, at its manufacturing sites, the Company continues to enforce work practices in line with WHO and CDC guidelines.
Beximco Pharma is committed to continue uninterrupted supply of all essential medicines during this difficult time. To meet the growing demand for products with potential benefits for COVID-19 patients, Beximco Pharma has ramped-up production of a number of these products, including the world's first generic remdesivir. The Company will continue to introduce evidence-based treatment options that may be beneficial to COVID-19 patients, at the same time exploring global collaborations in this area.
However, the Company continues to experience disruption to its international distribution network and supply chain, with increasing prices for APIs. The Company is working closely with its supplier networks to review alternative sources as part of contingency planning and to ensure supply of materials at competitive prices.
As previously announced, as a result of Bangladesh's economic slowdown and disruption to the Company's international distribution network and supply chain, directly attributable to the impact of the COVID-19 pandemic, the Companyexpects to report year-on-year sales growth for the full year to 30 June 2020, but at a lower level than originally anticipated.The Company also expects some impact on profitability for the full year 2020. Given the ongoing uncertainties around the impact of COVID-19 on Beximco Pharma, the Company is unable to provide a longer-term view at this time.
Exchange rate used
31 March 2020 - 1 GBP = BDT 105.58
31 March 2019 - 1 GBP = BDT 109.79
For further information please visit www.beximcopharma.com or enquire to:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 58611001, ext.20080
Mohammed Ali Nawaz, Chief Financial Officer
Tel: +880 2 58611001, ext.20030
Jamal Ahmed Choudhury, Executive Director (A&F)
Tel: +880 2 58611001, ext.20022
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady / Andrew Emmott
Tel: +44 (0)20 3368 3551 / 3555
SP Angel Corporate Finance LLP (Broker)
Vadim Alexandre / Abigail Wayne
Tel: +44 (0) 20 3470 0470
FTI Consulting
Simon Conway / Victoria Foster Mitchell
Tel: +44 (0)20 3727 1000
Notes to Editors
About Beximco Pharmaceuticals Limited
Beximco Pharma is a leading manufacturer and exporter of medicines based in Bangladesh. Since its inception in 1976, the Company remains committed to health and wellbeing of people across all the continents by providing access to contemporary medicines. Company's broad portfolio of generics encompasses diverse delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, insulins, prefilled syringes, injectables, nebuliser solutions, oral soluble films etc. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies.
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 and it has a geographic footprint in more than 50 countries. More than 4,500 employees are driving the company towards achieving its aspiration to be among the most admired companies in the world.
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Financial Position (Un-audited)
As at March 31, 2020
As at March 31, 2020 | Taka '000 As at June 30, 2019 | |||||||
ASSETS | ||||||||
Non-Current Assets | 37,020,572 | 35,949,931 | ||||||
Property, Plant and Equipment- Carrying Value | 35,172,463 | 34,056,667 | ||||||
Intangible Assets | 1,297,667 | 1,334,922 | ||||||
Goodwill | 546,691 | 546,691 | ||||||
Other Investment | 3,751 | 5,329 | ||||||
Other Non-current Assets | - | 6,322 | ||||||
Current Assets | 13,092,029 | 13,264,161 | ||||||
Inventories | 6,179,832 | 5,924,031 | ||||||
Spares & Supplies | 667,142 | 726,127 | ||||||
Accounts Receivable | 3,455,957 | 3,334,959 | ||||||
Loans, Advances and Deposits | 2,322,153 | 2,309,504 | ||||||
Advance Income Tax | - | 35,681 | ||||||
Short Term Investment | 49,247 | 323,365 | ||||||
Cash and Cash Equivalents | 417,698 | 610,494 | ||||||
TOTAL ASSETS | ||||||||
50,112,601 | 49,214,092 | |||||||
SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||||
Equity Attributable to the Owners of the Company | 31,585,257 | 29,588,317 | ||||||
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 | 1,125,767 | 1,131,853 | ||||||
Unrealized Gain/(Loss) | 926 | 2,504 | ||||||
Retained Earnings | 19,148,937 | 17,144,333 | ||||||
Non-Controlling Interest | 290,383 | 276,007 | ||||||
TOTAL EQUITY | 31,875,640 | 29,864,324 | ||||||
Non-Current Liabilities | 5,894,320 | 6,603,936 | ||||||
Long Term Borrowings-Net of Current Maturity | ||||||||
1,773,317 | 2,595,608 | |||||||
Liability for Gratuity and WPPF & Welfare Funds | 1,959,924 | 1,860,905 | ||||||
Deferred Tax Liability | 2,161,079 | 2,147,423 | ||||||
Current Liabilities and Provisions | 12,342,641 | 12,745,832 | ||||||
Short Term Borrowings | 8,204,734 | 9,272,501 | ||||||
Long Term Borrowings-Current Maturity | 1,533,833 | 1,616,671 | ||||||
Creditors and Other Payables | 1,323,583 | 1,091,810 | ||||||
Accrued Expenses | 692,683 | 590,317 | ||||||
Dividend Payable | 77,322 | 7,235 | ||||||
Income Tax Payable | 510,486 | 167,298 | ||||||
TOTAL EQUITY AND LIABILITIES | ||||||||
50,112,601 | 49,214,092 | |||||||
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Profit or Loss and Other Comprehensive Income (Un-audited)
For the Period July 2019 - March 2020
Taka '000 | |||||||||||||||||||||||||||
July 2019 - | July 2018 - | January - | January - | ||||||||||||||||||||||||
March 2020 | March 2019 | March 2020 | March 2019 | ||||||||||||||||||||||||
Net Revenue | 19,105,589 | 16,866,369 | 6,610,063 | 5,756,571 | |||||||||||||||||||||||
Cost of Goods Sold | (10,202,789) | (8,970,049) | (3,515,134) | (3,030,293) | |||||||||||||||||||||||
Gross Profit | 8,902,800 | 7,896,320 | 3,094,929 | 2,726,278 | |||||||||||||||||||||||
Operating Expenses | (4,670,945) | (4,166,363) | (1,620,968) | (1,481,464) | |||||||||||||||||||||||
Administrative Expenses | (578,793) | (570,950) | (190,089) | (205,878) | |||||||||||||||||||||||
Selling, Marketing and Distribution Expenses | (4,092,152) | (3,595,413) | (1,430,879) | (1,275,586) | |||||||||||||||||||||||
| |||||||||||||||||||||||||||
Profit from Operations | 4,231,855 | 3,729,957 | 1,473,961 | 1,244,814 | |||||||||||||||||||||||
Other Income | 198,349 | 56,770 | 41,557 | 26,239 | |||||||||||||||||||||||
Finance Cost | (790,022) | (716,688) | (257,697) | (234,508) | |||||||||||||||||||||||
Profit Before Contribution to WPPF & Welfare Funds | 3,640,182 | 3,070,039 | 1,257,821 | 1,036,545 | |||||||||||||||||||||||
Contribution to WPPF & Welfare Funds | (174,869) | (147,700) | (60,402) | (49,862) | |||||||||||||||||||||||
Profit Before Tax | |||||||||||||||||||||||||||
3,465,313 | 2,922,339 | 1,197,419 | 986,683 | ||||||||||||||||||||||||
Income Tax Expenses | (820,584) | (686,522) | (288,063) | (238,088) | |||||||||||||||||||||||
Current Tax | (806,929) | (703,498) | (278,783) | (214,345) | |||||||||||||||||||||||
Deferred Tax Income/(Expense) | (13,655) | 16,976 | (9,280) | (23,743) | |||||||||||||||||||||||
Profit After Tax | 2,644,729 | 2,235,817 | 909,356 | 748,595 | |||||||||||||||||||||||
Profit/(Loss) Attributable to: | |||||||||||||||||||||||||||
Owners of the Company | 2,626,880 | 2,235,596 | 900,434 | 747,193 | |||||||||||||||||||||||
Non-controlling interest | 17,849 | 221 | 8,922 | 1,402 | |||||||||||||||||||||||
2,644,729 | 2,235,817 | 909,356 | 748,595 | ||||||||||||||||||||||||
Other Comprehensive Income-Unrealized Gain/(Loss) | (1,578) | (523) | (134) | 827 | |||||||||||||||||||||||
Total Comprehensive Income for the Period | |||||||||||||||||||||||||||
2,643,151 | 2,235,294 | 909,222 | 749,422 | ||||||||||||||||||||||||
Total Comprehensive Income Attributable to: | |||||||||||||||||||||||||||
Owners of the Company | 2,625,302 | 2,235,073 | 900,300 | 748,020 | |||||||||||||||||||||||
Non-controlling interest | 17,849 | 221 | 8,922 | 1,402 | |||||||||||||||||||||||
2,643,151 | 2,235,294 | 909,222 | 749,422 | ||||||||||||||||||||||||
Earnings Per Share (EPS) | Tk. | 6.48 | 5.51 | 2.22 | 1.84 | ||||||||||||||||||||||
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 Subsidiaries
Consolidated Statement of Changes in Equity (Un-audited)
For the Period July 2019 -March 2020
As at March 31, 2020 | Taka' 000 | ||||||||||
Share | Share | Excess of | Capital | Revaluation | Unrealized | Retained | Equity | Non- | Total | ||
Capital | Premium | Issue | Reserven | Surplus | Gain/(Loss) | Earnings | attributable | Controlling | Equity | ||
Price over | On | to the | Interests | ||||||||
Face Value | Merger | Owners | |||||||||
of GDRs | of the | ||||||||||
Company | |||||||||||
Balance as on July 01, 2019 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,131,853 | 2,504 | 17,144,333 | 29,588,317 | 276,007 | 29,864,324 | |
Total Comprehensive Income: | |||||||||||
Profit/(Loss) for the Period | - | - | - | - | - | - | 2,626,880 | 2,626,880 | 17,849 | 2,644,729 | |
Other Comprehensive Income/(Loss) | - | - | - | - | - | (1,578) | - | (1,578) | - | (1,578) | |
Transactions with the Shareholders: | |||||||||||
Cash Dividend | - | - | - | - | - | - | (608,335) | (608,335) | (608,335) | ||
Cash Dividend NPL | (20,027) | (20,027) | (3,473) | (23,500) | |||||||
Adjustment for Depreciation on | |||||||||||
Revalued Assets | - | - | - | - | (6,086) | - | 6,086 | - | - | - | |
Balance as on March 31, 2020 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,125,767 | 926 | 19,148,937 | 31,585,257 | 290,383 | 31,875,640 | |
Number of Shares | 405,556,445 | ||||||||||
Net Asset Value (NAV) Per Share | 77.88 | ||||||||||
As at March 31, 2019 | Taka' 000 | ||||||||||
Share | Share | Excess of | Capital | Revaluation | Unrealized | Retained | Equity | Non- | Total | ||
Capital | Premium | Issue | Reserven | Surplus | Gain/(Loss) | Earnings | attributable | Controlling | Equity | ||
Price over | On | to the | Interests | ||||||||
Face Value | Merger | Owners | |||||||||
of GDRs | of the | ||||||||||
Company | |||||||||||
Balance as on July 01, 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 | - | - | - | - | - | - | 2,235,596 | 2,235,596 | 221 | 2,235,817 | |
Other Comprehensive Income/(Loss) | - | - | - | - | - | (523) | - | (523) | - | (523) | |
Transactions with the Shareholders: | |||||||||||
Cash Dividend | - | - | - | - | - | - | (506,945) | (506,945) | (868) | (507,813) | |
Adjustment for Depreciation on | |||||||||||
Revalued Assets | - | - | - | - | (6,881) | - | 6,881 | - | - | ||
Adjustment for Deferred Tax on | |||||||||||
Revalued Assets | - | - | - | - | (18,823) | - | - | (18,823) | (18,823) | ||
Balance as on March 31, 2019 | 4,055,564 | 5,269,475 | 1,689,637 | 294,951 | 1,133,574 | 3,834 | 16,344,233 | 28,791,268 | 269,227 | 29,060,495 | |
Number of Shares | 405,556,445 | ||||||||||
Net Asset Value (NAV) Per Share | 70.99 | ||||||||||
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Cash Flows (Un-audited)
For the Period July 2019 - March 2020
Taka '000 | ||||||
July 2019- | July 2018- | |||||
March 2020 | March 2019 | |||||
Cash Flows from Operating Activities : | ||||||
Receipts from Customers and Others | 19,181,510 | 16,967,838 | ||||
Payments to Suppliers and Employees | (13,995,718) | (12,967,745) | ||||
Cash Generated from Operations | 5,185,792 | 4,000,093 | ||||
Interest Paid | (790,022) | (716,688) | ||||
Interest Received | 19,774 | 27,591 | ||||
Income Tax Paid | (428,060) | (682,990) | ||||
Net Cash Generated from Operating Activities | 3,987,484 | 2,628,006 | ||||
Cash Flows from Investing Activities : | ||||||
Acquisition of Property, Plant and Equipment | (1,920,349) | (1,857,053) | ||||
Intangible Assets | (18,542) | (120,122) | ||||
Investment in Subsidiary | - | (20,000) | ||||
Disposal of Property, Plant and Equipment | 3,647 | 17,391 | ||||
Dividend Received | 21,455 | 1,428 | ||||
(Increase)/Decrease in Short Term Investment | 274,118 | (26,023) | ||||
Net Cash Used in Investing Activities | (1,639,671) | (2,004,379) | ||||
Cash Flows from Financing Activities: | ||||||
Net Increase /(Decrease) in Long Term Borrowings | (912,187) | (1,260,862) | ||||
Net Increase/(Decrease) in Short Term Borrowings | (1,067,733) | 1,119,957 | ||||
Dividend Paid | (561,748) | (457,902) | ||||
Net Cash Used in Financing Activities | ||||||
(2,541,668) | (598,807) | |||||
Increase/(Decrease) in Cash and Cash Equivalents | (193,855) | 24,820 | ||||
Cash and Cash Equivalents at Beginning of Period | 610,494 | 393,736 | ||||
Effect of exchange rate changes on Cash and Cash Equivalents | 1,058 | 172 | ||||
Cash and Cash Equivalents at End of Period | 417,698 | 418,728 | ||||
Net Operating Cash Flow Per Share | 9.83 | 6.48 | ||||
Number of Shares used to compute Net Operating Cash Flow Per Share | 405,556,445 | 405,556,445 | ||||