Square Pharmaceuticals, the largest drug maker in the country, posted a record profit of Tk 20.92 billion for FY’24, driven by record sales.
Based on the record consolidated net profit, the company also declared the highest ever cash dividend — 110 per cent — for the same fiscal year.
Year on year, the drug maker registered a 10.26 per cent profit growth. The consolidated net profit was Tk 18.98 billion in FY’23.
The company’s expanded distribution network and higher sales volume boosted its revenue, resulting in record profit growth in FY’24, said a senior official of the company.
The board of directors of the company declared the record cash dividend at a meeting on Wednesday. It paid out 105 per cent cash dividend for FY’23 and 100 per cent cash dividend for FY’22.
Company officials said that they expected to see higher profits, but the rise in dollar rates slightly dampened their earnings. They had to purchase dollars at rates as high as Tk 117 in FY’24, compared to Tk 82 at the beginning of FY’23.
A senior official of the company said they, however, were able to maintain their profit growth by enhancing their field forces and distribution mechanism.
As a result, the company’s selling and distribution expenses increased by around 20 per cent, he said.
Also, the cost of goods sold increased by 12 per cent year-on-year to Tk 37 billion in FY’24.
The official said the company’s persistent financial strength, distinct strategic approach and the dedicated efforts of the employees also played an important role in reporting their profit growth.
In FY’24, Square Pharma’s revenue rose 12 per cent to Tk 70 billion.
Its consolidated net asset value per share stood at Tk 142.05 for FY’24 as against Tk 129.95 in the previous fiscal year.
The consolidated net operating cash flow per share (NOCFPS) rose to Tk 20.90 in FY’24, up from Tk 9.64 in the previous fiscal year.
The increase in NOCFPS was attributed to the company’s improved collection efforts against sales during the reported year.
At Wednesday’s meeting, the company’s board of directors also approved a proposal for BMRE (Balancing, Modernization, Rehabilitation, and Expansion) and the purchase of capital machinery and land for future expansion, with an aggregate cost of Tk 5 billion.
The annual general meeting of the company will be held on December 18 while the record date for entitlement of dividend is on November 21.
Square Pharma has seen a surge in demand for its products in recent times. To meet this increased demand and introduce new products, the company has entered into manufacturing contracts with local firms such as Aristopharma, Euro Pharma, Renata Oncology and Apex Pharma.
Though Square Pharma’s business mainly focuses on the local market, it has expanded a foothold in the export market too, having supplied drugs to well-regulated markets, such as the US and the EU nations.
Square Pharma has already set up its plant in Kenya at an export processing zone in Nairobi in 2018, and went into commercial production at the beginning of last year.
Square Pharma is the second largest market-cap listed firm after Grameenphone and total market-cap stood at Tk 199 billion as of Wednesday.
Its stock price on the Dhaka Stock Exchange closed at Tk 224.50 on Wednesday, up 0.13 per cent from the previous session. thefinancialexpress.com
