Beximco Pharmaceuticals Ltd. — Audit Report / Information 2019

Nov 11, 2019

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RNS Number : 8760S

Beximco Pharmaceuticals Ltd

11 November 2019

11 November 2019

BEXIMCO PHARMACEUTICALS LTD.

Results for the twelve month period ended 30 June 2019

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 month period ended 30 June 2019.

Highlights:

Financial - continued delivery of strong double-digit growth

·      Net sales increased 28.8% to Bangladesh Taka ("BDT") 22,816.6m / £212.7m (2017-18: BDT 17,716.7m / £160.3m)

o  Domestic sales increased 25.1% to BDT 20,314.0m / £189.4m (2017-18: 16,239.7m / £146.9m)

o  Export sales increased 69.4% to BDT 2,502.6m / £23.3m (2017-18: BDT 1,477.0m / £13.4m)

·      Profit after tax increased 20.0% to BDT 3,040.4m / £28.4m (2017-18: BDT 2,532.7m / £22.9m)

·      EPS for the year amounted to BDT 7.48

·      Recommended 15% cash dividend (BDT 1.50 per share)

Operational - continued portfolio expansion and strengthening of international presence   

·      Launched a total of 20 new products, including:

o  Recombinant human insulin (Gensulin), together with the insulin pen (Gensupen), in collaboration with Polish biotech company, Bioton S.A.   

o  Four products from subsidiary, Nuvista Pharma, in the domestic market

·      Completed 77 registrations for 50 products in 23 countries

·      US

o  Acquired eight ANDAs from Sandoz Inc. for the US market

o  Received US Food and Drug Administration (FDA) approval for two cardiovascular drugs (Nadolol and Sotalol AF) and an anti-allergy drug (Cyproheptadine)

o  Launched Metformin Hydrochloride (500mg and 750mg), an anti-diabetic, extended release drug in the US market

·      Europe and RoW

o  Successfully completed EU GMP audits by German and Malta Regulatory authorities

o  Commenced export to the UAE

·      Received WHO Prequalification for Lamivudine 300 mg tablet, an antiviral product

·      Received approval from the National Board of Revenue, Bangladesh as Authorised Economic Operator (AEO), a privilege given to selected companies for fast custom clearance in import and export

·      Won the Scrip Award for "Community Partnership of the Year", which recognises pharma and biotech companies for the way in which they contribute to the wider community 

Post period-end - continued focus on product mix and recognition of high-quality, patient-centric approach  

·      Launched Maxhaler mDPI for the first time in Bangladesh, which is the generic version of GSK's Seretide Accuhaler

·      Launched fifth product, Nadolol, a cardiovascular drug, in the US market

·      Won Bangladesh's "National productivity and quality excellence award 2018", a recognition of outstanding contribution in increasing productivity and excellence in product quality

·      Received "Global Generics & Biosimilars Awards 2019" in the category of Company of the Year, Asia Pacific, which recognises the efforts made by global generics and biosimilars sectors, to make affordable medicines available to more patients across the globe

Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:

"I am very pleased with the strong financial and operational performance of the Company during the year. Our impressive organic revenue growth was supplemented by revenues from Nuvista Pharma, which we acquired in April 2018. Our continued focus on product mix, especially our rapidly growing portfolio across cardiovascular, respiratory and diabetes, further underpinned the continuing sales growth in our domestic market, a trend which we expect to continue. Our export business also performed well as we strengthen our position in US market, which now accounts for 45% of our total export business, and is where we currently have 15 approved ANDAs, including eight products acquired from Sandoz during the year. I am confident we can build on this momentum and continue to build value for our shareholders."  

Exchange rates of £1 = Taka 110.54 for 2017-18 numbers and £1 = Taka 107.26 for 2018-19 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

Mohammad Asad Ullah, FCS, Executive Director & Company Secretary

Tel: +880 2 58611891, +880 2 58612040, Ext. 10140

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 4,200 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, 2019

								Amount in Taka
						June 30, 2019				June 30, 2018
ASSETS
Non-Current Assets						35,949,930,818			32,394,686,712
Property, Plant and Equipment-Carrying Value						34,056,667,212			30,524,692,707
Intangible Assets						1,334,921,698			1,280,695,416
Goodwill						546,691,213			546,691,213
Investment In Associates						-			30,749,850
Other Investment						5,329,379			5,757,808
Other Non-current Assets						6,321,316			6,099,718
Current Assets						13,264,161,542			11,344,199,700
Inventories						5,924,031,678			5,058,847,681
Spares & Supplies						726,127,262			663,911,096
Accounts Receivable						3,334,958,905			2,761,509,393
Loans, Advances and Deposits						2,309,503,747			2,094,229,902
Advance Income Tax						35,681,115			32,568,508
Short Term Investment						323,364,536			339,397,174
Cash and Cash Equivalents						610,494,299				393,735,946
TOTAL ASSETS						49,214,092,360				43,738,886,412
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company						29,588,317,284			27,081,962,616
Issued Share Capital						4,055,564,450			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						1,131,853,004			1,159,277,845
Unrealized Gain/(Loss)						2,504,203			4,356,762
Retained Earnings						17,144,333,029			14,608,700,961
Non-Controlling Interest						276,006,553			269,874,176
TOTAL EQUITY						29,864,323,837			27,351,836,792
Non-Current Liabilities						6,603,936,369			7,368,863,860
Long Term Borrowings-Net of Current Maturity						2,595,607,792			4,017,425,267
Liability for Gratuity and WPPF & Welfare Funds						1,860,904,996			1,324,166,498
Deferred Tax Liability						2,147,423,581			2,027,272,095
Current Liabilities and Provisions						12,745,832,154			9,018,185,760
Short Term Borrowings						9,272,501,280			5,600,826,635
Long Term Borrowings-Current Maturity						1,616,670,549			1,568,989,745
Creditors and Other Payables						1,091,809,722			991,712,907
Accrued Expenses						590,317,150			418,476,895
Dividend Payable						7,235,215			4,763,126
Income Tax Payable						167,298,238				433,416,452
TOTAL EQUITY AND LIABILITIES						49,214,092,360				43,738,886,412

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the Year ended June 30, 2019

						Amount in Taka
		July 2018 - June 2019				July 2017 - June 2018
Net Revenue		22,816,629,795	17,716,716,855
Cost of Goods Sold		(12,196,286,770)			(9,430,737,431)
Gross Profit		10,620,343,025			8,285,979,424
Operating Expenses		(5,554,169,458)	(4,259,811,440)
Administrative Expenses		(752,944,182)			(618,675,127)
Selling, Marketing and Distribution Expenses		(4,801,225,276)			(3,641,136,313)
Profit from Operations		5,066,173,567	4,026,167,984
Other Income		139,917,665	43,757,880
Finance Cost		(1,029,762,542)	(540,283,443)
Share of Loss of Associates		(29,325,720)	-
Profit Before Contribution to WPPF & Welfare Funds		4,147,002,970	3,529,642,421
Contribution to WPPF & Welfare Funds		(200,937,234)	(168,308,290)
Profit Before Tax		3,946,065,736	3,361,334,131
Income Tax Expenses		(905,662,782)	(828,679,830)
Current Tax		(803,760,846)			(792,620,241)
Deferred Tax		(101,901,936)			(36,059,589)
Profit After Tax		3,040,402,954	2,532,654,301
Profit/(Loss) Attributable to:
Owners of the Company		3,033,402,333			2,536,543,948
Non-controlling interest		7,000,621			(3,889,647)
		3,040,402,954	2,532,654,301
Other Comprehensive Income-Unrealized Gain/(Loss)		(1,852,559)	481,697
Total Comprehensive Income for the Period		3,038,550,395			2,533,135,998
Total Comprehensive Income Attributable to:
Owners of the Company		3,031,549,774			2,537,025,645
Non-controlling interest		7,000,621			(3,889,647)
		3,038,550,395	2,533,135,998
Earnings Per Share (EPS)		7.48			6.25

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Changes in Equity

For the Year Ended June 30, 2019

As at June 30, 2019									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-Con trolling Interests	Total Equity
Balance as on July 01, 2018	4,055,564,450	5,269,474,690	1,689,636,958	294,950,950	1,159,277,845	4,356,762	14,608,700,961	27,081,962,616	269,874,176	27,351,836,792
Total Comprehensive Income:
Share Capital Beximco Pharma API Ltd.	-	-	-	-	-	-	-	-	100	100
Profit/(Loss) for the Period	-	-	-	-	-	-	3,033,402,333	3,033,402,333	7,000,621	3,040,402,954
Other Comprehensive Income/(Loss)	-	-	-	-	-	(1,852,559)	-	(1,852,559)	-	(1,852,559)
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(506,945,556)	(506,945,556)	(868,344)	(507,813,900)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(9,175,291)	-	9,175,291	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	(18,249,550)	-	-	(18,249,550)	-	(18,249,550)
Balance as on June 30, 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
Net Asset Value (NAV) Per Share								72.96

As at June 30, 2018
	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-Con trolling Interests	Total Equity
Balance as on July 01, 2017	4,055,564,450	5,269,474,690	1,689,636,958	294,950,950	1,190,203,818	3,875,065	12,568,719,969	25,072,425,900	-	25,072,425,900
Acquisition of Subsidiary									273,763,823	273,763,823
Total Comprehensive Income:
Profit/(Loss) for the Period	-	-	-	-	-	-	2,536,543,948	2,536,543,948	(3,889,647)	2,532,654,301
Other Comprehensive Income/(Loss)	-	-	-	-	-	481,697	-	481,697	-	481,697
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(506,945,556)	(506,945,556)	-	(506,945,556)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(10,382,600)	-	10,382,600	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	(20,543,373)	-	-	(20,543,373)	-	(20,543,373)
Balance as on June 30, 2018	4,055,564,450	5,269,474,690	1,689,636,958	294,950,950	1,159,277,845	4,356,762	14,608,700,961	27,081,962,616	269,874,176	27,351,836,792
Net Asset Value (NAV) Per Share								66.78

Beximco Pharmaceuticals Limited and its Subsidiaries Consolidated Statement of Cash Flows

For the Year ended June 30, 2019

							Amount in Taka
				July 2018-June 2019			July 2017-June 2018
Cash Flows from Operating Activities :
Receipts from Customers and Others				22,463,550,299		17,195,399,333
Payments to Suppliers and Employees				(17,434,690,241)		(14,113,012,465)
Cash Generated from Operations				5,028,860,058	3,082,386,868
Interest Paid				(1,032,409,014)	(536,570,775)
Interest Received				36,457,527	54,928,425
Income Tax Paid				(1,072,991,667)	(781,630,595)
Net Cash Generated from Operating Activities				2,959,916,904	1,819,113,923
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment				(4,416,446,385)		(4,951,352,340)
Intangible Assets				(128,619,282)		(106,921,036)
Investment in Subsidiary				-		(2,125,186,000)
Disposal of Property, Plant and Equipment				17,540,625		14,114,722
Dividend Received				1,491,901		1,504,092
Decrease in Short Term Investment				16,032,638		547,179,732
Net Cash Used in Investing Activities				(4,510,000,503)	(6,620,660,830)
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings				(1,412,334,115)		1,859,021,877
Net Increase in Short Term Borrowings				3,684,312,230		3,546,896,539
Share capital				100		-
Dividend Paid				(505,351,881)		(502,757,959)
Net Cash Generated from Financing Activities				1,766,626,334	4,903,160,457
Increase in Cash and Cash Equivalents				216,542,735	101,613,550
Cash and Cash Equivalents at Beginning of Year				393,735,946	292,122,396
Effect of movement in exchange rates on cash held				215,618	-
Cash and Cash Equivalents at End of Year				610,494,299	393,735,946
Net Operating Cash Flow Per Share				7.30	4.49

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