Square Pharma projects lower revenue and profit due to a fire incident
The company said that the assessment of the damage is under active scrutiny by the tripartite team that is composed of company experts, firefighting units, and surveyors of insurance companies
Square Pharmaceuticals is anticipating declines in its yearly revenue and profits because of a fire that recently broke out in its Large Volume Parenteral (LVP) plant situated in Kaliakoir, Gazipur.
In Wednesday's disclosure about the fire incident on the Dhaka Stock Exchange (DSE) website, the company said its annual revenue will reduce by Tk50 crore and net profit by Tk8 crore.
The production of 50 of its products will be hampered and the production resumption, after restoring the damaged premises, might take two to three years, according to the disclosure.
The company said that the assessment of the damage is under active scrutiny by the tripartite team that is composed of company experts, firefighting units, and surveyors of insurance companies.
Also, its LVP plant is fully insured under the coverage of the Industrial All Risk Insurance Policy.
The fire broke out in the plant, where mainly saline products were being produced, on 23 May.
After 11 hours, it was brought under control by the hard work of 14 firefighting units.
According to its financial statement, in the first nine months of the current fiscal, the company's net revenue rose 16% to Tk4,372.22 crore, from Tk3,771.18 crore in the same period of the previous fiscal.
During the period, its profit increased by 16.35% to Tk1,405.56 crore, which was Tk1,207.97 crore a year ago.
Square Pharmaceuticals was incorporated in 1964 and got listed on the stock exchanges in 1995.
The company manufactures and markets generic pharmaceuticals, basic chemicals, and animal health products. It also markets pesticides.
Rev: Moin
