The dengue outbreak in Bangladesh has proven to be a significant catalyst for Square Pharmaceuticals, the leading drug manufacturer in the country, propelling a notable surge in revenue during the initial quarter of the current fiscal year.
In the period from July to September, the company achieved an impressive 15% year-on-year increase in revenue, fuelled by heightened demand for its products.
The overall revenue of the company surged by 14.88% to Tk2,161 crore, surpassing the Tk1,881 crore recorded in the corresponding period of the previous fiscal year.
A disclosure revealed that Square Pharmaceuticals contributed Tk1,901 crore to the total revenue, while its subsidiaries, Square Lifesciences and Square Pharma Kenya, contributed Tk258 crore and Tk2.21 crore, respectively.
Of the revenue generated by Square Pharmaceuticals, Tk1841 crore stemmed from local sales, with Tk59 crore attributed to exports.
The company also reported a robust 9% growth in profits, totalling Tk600 crore compared to Tk550 crore in the same period of the preceding fiscal year.
Muhammad Zahangir Alam, the chief financial officer of Square Pharmaceuticals, noted that the upswing in dengue cases significantly contributed to this substantial revenue growth, emphasising the increased consumer confidence in their product quality.
Furthermore, Alam highlighted the positive impact of Square Pharmaceuticals Kenya EPZ's revenue on the overall performance.
The management anticipates a gradual improvement in the company's performance, emphasising that a minimum of two years is required for optimal operations. As of now, the company has obtained approval for 10 separate products in the market.
Square Pharmaceuticals, as the sole owner of its subsidiary, allocated 40% of the Kenyan project's cost as equity, with the remaining capital secured through bank loans.
The company's cost of goods sold reached Tk869 crore, compared to Tk778 crore a year ago. Earnings per share stood at Tk6.77, up from Tk6.20 in the same period of the previous year.
As of the end of September in the current fiscal year, the net asset value per share reached Tk136.79.
In fiscal 2022-23, the earnings per share (EPS) reached Tk21.41, a 5% increase from the previous fiscal year, and the net asset value per share experienced a notable 9% growth, reaching Tk129.95.
Looking forward, Square Pharmaceuticals announced a strategic investment of Tk400 crore for Balancing, Modernisation, Rehabilitation, and Expansion (BMRE), capital machinery, and land acquisition for future expansion.
The company's shares concluded trading at Tk211.90 on the Dhaka Stock Exchange as of Wednesday.
As of 31 October 2023, sponsor-directors held 34.67% of shares, institutional investors 15.01%, and foreign investors 13.67%, and general shareholders owned 36.65%