Half Year Results 2023-24

RNS Number : 2703B

Beximco Pharmaceuticals Ltd

30 January 2024

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a regulatory information service, this information is considered to be in the public domain.

BEXIMCO PHARMACEUTICALS LIMITED

Half Year Results 2023-24

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 unaudited financial results for the six months ended 31 December 2023.

Financial highlights

Half year financial highlights

· Net sales increased 12.1% to Bangladesh Taka ("BDT") 22,063.6m / £ 157.7m (2022-23: BDT 19,678.7m / £ 164.4m)

o Domestic sales increased 12.9% to BDT 20,733.4m / £148.2m (2022-23: BDT 18,370.9m / £153.4m )

o Export sales increased 1.7% to BDT 1,330.2m / £9.5m (2022-23: BDT 1,307.8m / £10.9m)

· Profit after tax increased 13.2% to BDT 3,008.2m / £21.5m (2022-23: BDT 2,658.1.m / £22.2m)

Second quarter financial highlights

· Net sales increased 10.2% to BDT 10,904.2m / £77.9m (2022-23: BDT 9,891.5m / £82.6m)

· Profit after tax increased 15.7% to BDT 1440.8m / £10.3m (2022-23: BDT 1,245.4m / £10.4m)

Operational highlights

· Launched 15 new products (22 presentations) in Bangladesh market of which 10 are for the first time

· Completed 19 new registrations of 19 products in 7 countries

· Received two product approvals from the US FDA

o Hydroxyzine Pamoate capsule (an antihistamine drug), and Carbidopa tablet (an antiparkinson drug)

· Obtained two product approvals from the Therapeutic Goods Administration (TGA), Australia

o Mometasone nasal spray (a corticosteroid), and Hyoscine Butylbromide tablet (an antispasmodic drug)

· Won the National Export Trophy (Gold) for a record eighth time

Ahmed Sohail Fasihur Rahman, Chairman of Beximco Pharmaceuticals, commented:

"We are pleased with the underlying performance of our top and bottom lines over the period despite currency devaluation impacting the results when translated into GBP. Operationally, we have continued to strengthen our portfolio over the period with 15 new product launches in Bangladesh and have received important approvals from the US FDA and the Australian TGA. We look forward to continuing this momentum into the second half of the year."

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

(Exchange rates of £1 = Taka 139.9145 for 31 December 2023 numbers and £1 = 119.7199 for 31 December 2022 have been used in this announcement.)

For further information please visit www.beximcopharma.com or enquire to:

Beximco Pharma

S M Rabbur Reza, Chief Operating Officer

Tel: +880 2 58611001, Ext.20111

Mohammad Ali Nawaz, Chief Financial Officer

Tel: +880 2 58611001, Ext.20030

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Andrew Emmott

Tel: +44 (0) 20 3368 3551 / 3555

SP Angel Corporate Finance LLP (Broker)

Matthew Johnson

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 5700 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 (Unaudited)

As at December 31, 2023

		Taka '000
	December 31, 2023	June 30, 2023
ASSETS
Non-Current Assets	48,482,883	48,280,929
Property, Plant and Equipment- Carrying Value	42,380,652	42,245,615
Right-of-use Assets	563,598	562,224
Intangible Assets	4,785,070	4,721,035
Deferred Tax Asset	58,020	56,512
Goodwill	674,570	674,570
Other Investments	20,973	20,973
Current Assets	22,143,790	20,875,854
Inventories	12,374,309	12,133,278
Spares & Supplies	1,020,453	819,740
Accounts Receivable	3,707,317	3,574,655
Loans, Advances and Deposits	3,465,539	2,984,877
Advance Income Tax	230,359	227,618
Short Term Investment	250,000	-
Cash and Cash Equivalents	1,095,813	1,135,686

TOTAL ASSETS	70,626,673	69,156,783

SHAREHOLDERS' EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company	45,106,257	43,680,704
Issued Share Capital	4,461,121	4,461,121
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	1,139,242	1,141,178
Unrealized Gain/(Loss)	18,148	18,148
Retained Earnings	32,233,683	30,806,194

Non-Controlling Interest	3,937,481	3,938,962
TOTAL EQUITY	49,043,738	47,619,666
Non-Current Liabilities	7,982,275	8,272,093
Long Term Borrowings-Net of Current Maturity	1,816,284	2,550,833
Liability for Gratuity and WPPF & Welfare Funds	3,644,712	3,170,764
Deferred Tax Liability	2,521,279	2,550,496

Current Liabilities and Provisions	13,600,660	13,265,024
Short Term Borrowings	4,228,692	6,621,170
Long Term Borrowings-Current Maturity	1,558,911	1,439,895
Creditors and Other Payables	4,375,291	3,531,707
Accrued Expenses	993,934	1,129,700
Dividend Payable / Unclaimed Dividend	1,671,998	88,465
Income Tax Payable	771,834	454,087

TOTAL EQUITY AND LIABILITIES	70,626,673	69,156,783

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

For the Period July-December 2023

					Taka '000
		July - December 2023	July - December 2022	October - December 2023	October - December 2022
Net Revenue		22,063,578	19,678,740	10,904,211	9,891,538
Cost of Goods Sold		(12,264,030)	(10,808,580)	(6,012,518)	(5,457,544)
Gross Profit		9,799,548	8,870,160	4,891,693	4,433,994
Operating Expenses		(5,257,356)	(4,772,768)	(2,658,898)	(2,459,485)
Administrative Expenses		(652,434)	(603,688)	(347,750)	(328,941)
Selling, Marketing and Distribution Expenses		(4,604,922)	(4,169,080)	(2,311,148)	(2,130,544)
Profit from Operations		4,542,192	4,097,392	2,232,795	1,974,509
Other Income		131,448	265,750	(13,427)	97,708
Finance Cost		(571,702)	(644,487)	(273,948)	(333,514)
Profit Before Contribution to WPPF & Welfare Funds		4,101,938	3,718,655	1,945,420	1,738,703
Contribution to WPPF & Welfare Funds		(199,880)	(181,296)	(96,308)	(83,086)
Profit Before Tax		3,902,058	3,537,359	1,849,112	1,655,617
Income Tax Expenses		(893,889)	(879,266)	(408,344)	(410,237)
Current Tax		(924,052)	(718,829)	(434,057)	(324,981)
Deferred Tax		30,163	(160,437)	25,713	(85,256)
Profit After Tax		3,008,169	2,658,093	1,440,768	1,245,380
Profit/(Loss) Attributable to:
Owners of the Company		2,986,383	2,684,031	1,433,474	1,237,004
Non-controlling Interest		21,786	(25,938)	7,294	8,376
		3,008,169	2,658,093	1,440,768	1,245,380
Other Comprehensive Income/(Loss)		-	(2,384)	-	956
Total Comprehensive Income		3,008,169	2,655,709	1,440,768	1,246,336

Total Comprehensive Income Attributable to:
Owners of the Company		2,986,383	2,681,647	1,433,474	1,237,960
Non-controlling Interest		21,786	(25,938)	7,294	8,376
		3,008,169	2,655,709	1,440,768	1,246,336

Earnings Per Share (EPS)		6.69	6.02	3.21	2.77
Number of Shares	Nos.	446,112,089	446,112,089	446,112,089	446,112,089

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Changes in Equity (Unaudited)

For the Period July-December 2023

As at December 31, 2023										Taka '000
	Share Capital	Share Premium	Excess of Issue Price over Face Value of GDRs	Capital Reserve on Merger	Revaluation Surplus	Unrealized Gain/(Loss)	Retained Earnings	Equity attributable to the Owners of the Company	Non- Controlling Interests	Total Equity
Balance as on July 01, 2023	4,461,121	5,269,475	1,689,637	294,951	1,141,178	18,148	30,806,194	43,680,704	3,938,962	47,619,666
Total Comprehensive Income:
Profit/(Loss) for the Period	-	-	-	-	-	-	2,986,383	2,986,383	21,786	3,008,169
Other Comprehensive Income/(Loss)	-	-	-	-	-	-	-	-	-	-
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(1,561,392)	(1,561,392)	(23,267)	(1,584,659)

Adjustment for Depreciation on Revalued Assets	-	-	-	-	(2,498)	-	2,498	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	562	-	-	562	-	562
Balance as on December 31, 2023	4,461,121	5,269,475	1,689,637	294,951	1,139,242	18,148	32,233,683	45,106,257	3,937,481	49,043,738
Net Asset Value (NAV) Per Share							Tk.	101.11

As at December 31, 2022										Taka '000
	Share Capital	Share Premium	Excess of Issue Price over Face Value of GDRs	Capital Reserve on Merger	Revaluation Surplus	Unrealized Gain/(Loss)	Retained Earnings	Equity attributable to the Owners of the Company	Non- Controlling Interests	Total Equity
Balance as on July 01, 2022	4,461,121	5,269,475	1,689,637	294,951	1,116,896	20,532	27,747,886	40,600,498	4,035,507	44,636,005
Total Comprehensive Income:
Profit/(Loss) for the Period	-	-	-	-	-	-	2,684,031	2,684,031	(25,938)	2,658,093
Other Comprehensive Income/(Loss)	-	-	-	-	-	(2,384)	-	(2,384)	-	(2,384)
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(1,561,392)	(1,561,392)	(6,947)	(1,568,339)

Adjustment for Depreciation on Revalued Assets	-	-	-	-	(2,817)	-	2,817	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	634	-	-	634	-	634
Balance as on December 31, 2022	4,461,121	5,269,475	1,689,637	294,951	1,114,713	18,148	28,873,342	41,721,387	4,002,622	45,724,009
Net Asset Value (NAV) Per Share							Tk.	93.52

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

For the Period July-December 2023

		Taka '000
	July - December 2023	July - December 2022
Cash Flows from Operating Activities :
Receipts from Customers and Others	22,150,381	19,948,007
Payments to Suppliers and Employees	(16,504,378)	(16,401,961)
Cash Generated from Operations	5,646,003	3,546,046

Interest Paid	(570,773)	(642,283)
Interest Received	1,507	4,147
Income Tax Paid	(609,045)	(531,799)
Net Cash Generated from Operating Activities	4,467,692	2,376,111
Cash Flows from Investing Activities :

Acquisition of Property, Plant and Equipment	(983,629)	(1,338,771)
Intangible Assets	(178,608)	(37,494)
Disposal of Property, Plant and Equipment	4,947	13,015
Disposal of Intangible Assets	-	52,125
Short Term Investment	(250,000)	-
Net Cash Used in Investing Activities	(1,407,290)	(1,311,125)
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings	(714,610)	(1,051,068)
Net Increase/(Decrease) in Short Term Borrowings	(2,392,478)	46,974
Dividend Paid	(1,127)	(771)
Net Cash (Used in ) / from Financing Activities	(3,108,215)	(1,004,865)
Increase/(Decrease) in Cash and Cash Equivalents	(47,813)	60,121
Cash and Cash Equivalents at Beginning of Period	1,135,686	1,168,674
Effect of Exchange Rate Changes on Cash and Cash Equivalents	7,940	17,734
Cash and Cash Equivalents at End of Period	1,095,813	1,246,529
Number of Shares	446,112,089	446,112,089
Net Operating Cash Flows Per Share	10.01	5.33

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