Renata records three quarters of double-digit profit growth
Renata PLC reported 27.9% year-on-year consolidated profit growth for the nine months ended 31 March, 2026, following strong profit growth in three consecutive quarters.
The company posted 33% consolidated profit growth in the third quarter, after recording 26% growth in the second quarter and 24.6% in the first quarter, according to a press release.
Renata said its performance was supported by 6.5% year-to-date revenue growth, driven mainly by volume growth.
Keep updated, follow The Business Standard's Google news channel
Despite fewer selling days during the quarter because of the national election and Eid-ul-Fitr holidays, revenue remained resilient, led by 10.5% growth in the core local pharmaceutical segment, along with steady contributions from exports.
Profitability improved due to better gross margins, efficient procurement and strict control over expenses, including stable factory overheads and lower finance costs through strategic capital restructuring.
Key indicators also improved during the period.
Earnings per share rose 27.9% to Tk20.39, while net operating cash flow per share increased 2.9% to Tk22.40. Net asset value per share rose 4.8% to Tk320.02.
In the chairman's statement in the FY2024-25 annual report, the company said that in the absence of regulatory approvals for price adjustments, it had intensified its focus on portfolio optimisation and efficiency enhancement across all manufacturing sites.
The company said it had identified around 190 stock-keeping units where margins were either negative or too low, making production economically unviable.
"In the past two years, we have ceased production of 136 SKUs and stopped importing 16 SKUs where selling prices are insufficient to recover manufacturing costs — decisive measures aimed at preserving profitability and safeguarding long-term shareholder value," the statement said.
Renata said the 6.5% year-to-date revenue growth, improved gross margins and three consecutive quarters of double-digit profit growth reflect the effectiveness of its stated strategy.
The company also advanced its long-term growth strategy through investments in capacity expansion, automation, renewable energy and a growing pipeline of bio-equivalent products.
Renata said these initiatives are strengthening both its domestic leadership and international presence.
The company said emerging global risks may put pressure on input and logistics costs, but it remains focused on efficiency and cost management to sustain growth and deliver continued value to stakeholders.
