Beximco Pharmaceuticals Ltd. — Annual Report 2021

Nov 2, 2021

National Storage Mechanism | Additional information

RNS Number : 9816Q

Beximco Pharmaceuticals Ltd

02 November 2021

2 November 2021

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.

Results for the twelve-month period ended 30 June 2021

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 audited results for the twelve months ended 30 June 2021.

Highlights

Financial - demonstrated underlying strength with continued double-digit growth despite Covid-19 headwinds

·      Net sales increased 15.2% to Bangladesh Taka ("BDT") 29,493.6m / £251.4m (2019-20: BDT 25,611.9m / £245.5m)

-       Domestic sales increased 15.4% to BDT 26,369.6m / £224.8m (2019-20: BDT 22,860.1m / £219.1m)

-       Export sales increased 13.5% to BDT 3,124.0m / £26.6m (2019-20: BDT 2,751.8m / £26.4m)

·      Profit after tax increased 45.7% to BDT 5,165.7m / £44.0m (2019-20: BDT 3,544.4m / £34.0m)

·      EPS for the year amounted to BDT 11.49

·      Recommended 35% cash dividend (BDT 3.5 per share)

Operational - continued to build portfolio and international presence

·      Entered into a binding commitment with Sanofi group to acquire a majority stake (54.6%) in Sanofi Bangladesh Limited; completed post-period

·      Signed an exclusive agreement with the Serum Institute of India Pvt. Ltd (SII), the world's largest vaccine producer, for the distribution of AstraZeneca/Oxford's COVID-19 vaccine in Bangladesh.

o  Received and distributed seven million doses from the Serum Institute of India under the said agreement (with a further one million doses received post-period)

·      Domestic market:

o  Launched twenty-two new products (thirty-two presentation forms and strength) such as:

§ Remmo, a buffered esomeprazole MUPS (Multiple-Unit Pellet System) formulation of Esomeprazole

§ Fulphila, a USFDA and EMA approved first Biosimilar Pegfilgrastim from Mylan as a supportive chemotherapy treatment.

§ Beximco's first mosquito repellent cream NOMOS®, containing nature inspired ingredient Ethyl butylacetyl aminopropionate, commonly known as IR3535 (developed by Merck)

·      International market:

o  Completed twenty-five registrations for twenty-two products in fourteen countries

o  Entered eight new countries (Oman, Lebanon, Venezuela, Bolivia, Kosovo, Mexico, Congo, Mongolia)

o  Received ANVISA (Brazil) approval for OSD (T-II), MDI and Sterile unit

o  Received US Food and Drug Administration approval for Flecainide Acetate (50, 100 and 150 mg tablets), an antiarrhythmic drug used for treating irregular heartbeats and for muscle relaxant drug, Baclofen (post-period). Beximco Pharma now has nine Abbreviated New Drug Application (ANDA) approved for the US market

·      Awards:

o  Received highly prestigious CPhI Pharma Award in the category of 'Innovation in Response to COVID -19'

o  Won "Public Service-Best COVID-19 Response awards" at the 3rd edition of the Bangladesh Innovation Award 2021

o  Signed the "Open pledge from Global Manufacturers of Generic Medicines against COVID-19" on November 2020

o  Nominated for the Global Generics & Biosimilars Awards 2021 in the category of "Company of the year, Asia Pacific" and "Corporate Social Responsibility (CSR) Initiative of the Year"

Beximco Pharma managing director Nazmul Hassan MP commented,

"Against the backdrop of logistical and operational challenges presented by the Covid-19 pandemic, Beximco Pharma was able to deliver another year of double-digit revenue growth, thanks to the ongoing execution of our strategy. We have continued to expand the number of products available in our domestic market while simultaneously expanding our global footprint. Bolstered by the acquisition of a majority stake in Sanofi Bangladesh, we are well-positioned to maintain our growth trajectory and deliver affordable medicines for people around the world."

Exchange rates of £1 = Taka 104.331 for 2019-20 numbers and £1 = Taka 117.32 for 2020-21 numbers have been used in this announcement.

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

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 58611001, Ext.20080

Mohammed Ali Nawaz, Chief Financial Officer

Tel: +880 2 58611001, Ext.20030

Jamal Ahmed Choudhury, Director, Accounts & Finance

Tel: +880 2 58611001, Ext.20022

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Andrew Emmott

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

SP Angel Corporate Finance LLP (Broker)

Vadim Alexandre / Abigail Wayne

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 5500 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

As at June 30, 2021

			Amount in Taka
	June 30, 2021		June 30, 2020
ASSETS
Non-Current Assets	38,475,237,847		37,069,663,021
Property, Plant and Equipment- Carrying Value	36,211,375,594		35,000,809,631
Right-of-use Assets	319,884,849		240,163,919
Intangible Assets	1,380,693,809		1,275,560,330
Goodwill	546,691,213		546,691,213
Other Investments	16,592,382		3,751,551
Other Non-current Assets	-		2,686,377
Current Assets	13,770,846,179		13,049,078,919
Inventories	7,142,863,477		5,944,769,057
Spares & Supplies	661,722,724		775,528,787
Accounts Receivable	2,873,844,874		3,305,451,434
Loans, Advances and Deposits	2,416,948,496		2,388,313,122
Cash and Cash Equivalents	675,466,608		635,016,519
TOTAL ASSETS	52,246,084,026		50,118,741,940
EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company	37,030,558,202		32,495,120,607
Issued Share Capital	4,461,120,890		4,055,564,450
Share Premium	5,269,474,690		5,269,474,690
Excess of Issue Price over Face Value of GDRs	1,689,636,958		1,689,636,958
Capital Reserve on Merger	294,950,950		294,950,950
Revaluation Surplus	1,121,824,646		1,125,767,451
Unrealized Gain/(Loss)	13,767,206		926,375
Retained Earnings	24,179,782,862		20,058,799,733
Non-Controlling Interest	334,306,627		302,329,006
TOTAL EQUITY	37,364,864,829		32,797,449,613
Non-Current Liabilities	5,531,540,789		5,963,327,323
Long Term Borrowings-Net of Current Maturity	1,206,717,094		1,651,590,390
Liability for Gratuity and WPPF & Welfare Funds	2,335,257,766		2,144,053,434
Deferred Tax Liability	1,989,565,929		2,167,683,499
Current Liabilities and Provisions	9,349,678,408		11,357,965,004
Short Term Borrowings	5,023,181,128		7,398,361,360
Long Term Borrowings-Current Maturity	1,401,406,013		1,454,311,995
Creditors and Other Payables	1,965,048,180		1,397,817,066
Accrued Expenses	619,399,363		739,512,826
Dividend Payable / Unclaimed Dividend	118,137,390		82,075,347
Income Tax Payable	222,506,334		285,886,410
TOTAL EQUITY AND LIABILITIES	52,246,084,026		50,118,741,940

Beximco Pharmaceuticals Limited and its Subsidiaries 

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year ended June 30, 2021

			Amount in Taka
	July 2020- June 2021		July 2019 - June 2020
Net Revenue	29,493,573,869		25,611,947,655
Cost of Goods Sold	(15,570,071,581)		(13,712,847,509)
Gross Profit	13,923,502,288		11,899,100,146
Operating Expenses	(7,272,794,940)		(6,289,606,032)
Administrative Expenses	(896,648,965)		(792,951,709)
Selling, Marketing and Distribution Expenses	(6,376,145,975)		(5,496,654,323)
Profit from Operations	6,650,707,348		5,609,494,114
Other Income	908,275,284		293,558,304
Finance Cost	(858,685,146)		(1,013,804,085)
Profit Before Contribution to WPPF & Welfare Funds	6,700,297,486		4,889,248,333
Contribution to WPPF & Welfare Funds	(322,749,293)		(235,808,378)
Profit Before Tax	6,377,548,193		4,653,439,955
Income Tax Expenses	(1,211,798,461)		(1,108,956,854)
Current Tax	(1,386,678,310)		(1,086,668,418)
Deferred Tax Income/ (Expense)	174,879,849		(22,288,436)
Profit After Tax	5,165,749,732		3,544,483,101
Profit/(Loss) Attributable to:
Owners of the Company	5,127,693,711		3,514,687,301
Non-Controlling Interest	38,056,021		29,795,800
	5,165,749,732		3,544,483,101
Other Comprehensive Income/(Loss)	12,840,831		(1,577,828)
Total Comprehensive Income	5,178,590,563		3,542,905,273
Total Comprehensive Income Attributable to:
Owners of the Company	5,140,534,542		3,513,109,473
Non-Controlling Interest	38,056,021		29,795,800
	5,178,590,563		3,542,905,273
Earnings Per Share (EPS)/ Restated EPS	11.49		7.88

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Changes in Equity

For the Year Ended June 30, 2021

As at June 30, 2021						Amount in Taka
	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 Owners of the Company	Non-Controlling Interests	Total Equity
Balance as on July 01, 2020	4,055,564,450	5,269,474,690	1,689,636,958	294,950,950	1,125,767,451		926,375	20,058,799,733	32,495,120,607	302,329,006	32,797,449,613
Total Comprehensive Income:
Profit for the Year	-	-	-	-	-		-	5,127,693,711	5,127,693,711	38,056,021	5,165,749,732
Other Comprehensive Income/(Loss)	-	-	-	-	-		12,840,831	-	12,840,831	-	12,840,831
Transactions with the Shareholders:
Cash Dividend								(608,334,668)	(608,334,668)	(6,078,400)	(614,413,068)
Stock Dividend	405,556,440							(405,556,440)	-	-	-
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(7,180,526)		-	7,180,526	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	3,237,721		-	-	3,237,721	-	3,237,721
Balance as on June 30, 2021	4,461,120,890	5,269,474,690	1,689,636,958	294,950,950	1,121,824,646		13,767,206	24,179,782,862	37,030,558,202	334,306,627	37,364,864,829
Net Asset Value (NAV) Per Share								Tk.	83.01

As at June 30, 2020						Amount in Taka
	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 Owners of the Company	Non-Controlling Interests	Total Equity
Balance as on July 01, 2019	4,055,564,450	5,269,474,690	1,689,636,958	294,950,950	1,131,853,004		2,504,203	17,144,333,029	29,588,317,284	276,006,553	29,864,323,837
Total Comprehensive Income:
Profit for the Year	-	-	-	-	-		-	3,514,687,301	3,514,687,301	29,795,800	3,544,483,101
Other Comprehensive Income/(Loss)	-	-	-	-	-		(1,577,828)	-	(1,577,828)	-	(1,577,828)
Transactions with the Shareholders:
Cash Dividend								(608,334,668)	(608,334,668)	(3,473,347)	(611,808,015)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(8,114,071)		-	8,114,071	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	2,028,518		-	-	2,028,518	-	2,028,518
Balance as on June 30, 2020	4,055,564,450	5,269,474,690	1,689,636,958	294,950,950	1,125,767,451		926,375	20,058,799,733	32,495,120,607	302,329,006	32,797,449,613
Net Asset Value (NAV) Per Share								Tk.	80.12

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Cash Flows

For the Year ended June 30, 2021

			Amount in Taka
	July 2020- June 2021		July 2019- June 2020
Cash Flows from Operating Activities:
Receipts from Customers and Others	30,833,168,257		25,934,454,695
Payments to Suppliers and Employees	(22,500,770,314)		(18,467,458,543)
Cash Generated from Operations	8,332,397,943		7,466,996,152
Interest Paid	(861,452,888)		(1,012,519,091)
Interest Received	2,377,286		20,409,291
Income Tax Paid	(1,450,058,386)		(932,399,131)
Net Cash Generated from Operating Activities	6,023,263,955		5,542,487,221
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment	(2,520,682,923)		(2,243,555,782)
Intangible Assets	(37,734,793)		(31,745,002)
Disposal of Property, Plant and Equipment	32,831,171		3,646,251
Dividend Received	940,700		1,427,930
Decrease in Short Term Investment	-		323,364,536
Net Cash Used in Investing Activities	(2,524,645,845)		(1,946,862,067)
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings	(504,636,764)		(1,000,373,112)
Net Increase/(Decrease) in Short Term Borrowings	(2,375,180,232)		(1,970,741,462)
Dividend Paid	(578,351,025)		(601,957,017)
Net Cash (Used in) / from Financing Activities	(3,458,168,021)		(3,573,071,591)
Increase/(Decrease) in Cash and Cash Equivalents	40,450,089		22,553,563
Cash and Cash Equivalents at Beginning of Year	635,016,519		610,494,299
Effect of Exchange Rate Changes on Cash and Cash Equivalents	-		1,968,657
Cash and Cash Equivalents at End of Year	675,466,608		635,016,519
Net Operating Cash Flows Per Share	13.50		13.67

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