Beximco Pharmaceuticals Ltd.

Earnings Release • Nov 1, 2023

National Storage Mechanism | Additional information

RNS Number : 9344R

Beximco Pharmaceuticals Ltd

01 November 2023

1 November 2023

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 year ended 30 June 2023

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 year ended 30 June 2023.

Financial Highlights (consolidated)

·      Net sales increased 13.3% to Bangladesh Taka ("BDT") 39,266.7m / £288.6m (2021-22: BDT 34,669.2m / £309.7m). The decline in revenue when translated to British Pounds reflects the significant local currency depreciation over the period

o  Domestic sales increased 14.1% to BDT 36,503m/ £268.3m (2021-22: BDT 31,984.1m / £285. 8m)

o  Export sales increased 2.9% to BDT 2,763.2m / £20.3m (2021-22: BDT 2,685.1m / £24.0m)

·      Profit after tax decreased 9.5% to BDT 4,524.5m / £33.3m (2021-22: BDT 4,998.6m / £44.7m)

·      EPS for the year amounted to BDT 10.34 (2021-22:BDT 11.48)

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

·      Absence of non-recurring vaccine distribution fee income in the reporting period and rising costs driven by significant depreciation of domestic currency and high inflation impacted profit despite growth in revenue

Operational Highlights - Continued focus on execution; enhanced portfolio for domestic and global export markets

·      Launched 14 new generics in 23 different presentations in Bangladesh, including Mulina (Lefamulin) an anti-infective drug for the first time

·      Completed 33 new registrations of 19 generics (23 Presentations) in 17 other countries worldwide

·      Received three product approvals from the US FDA

o  Eletriptan (an antimigraine drug), Oxybutynin (an anticholinergic drug), and Nebivolol (a cardiovascular drug)

·      Obtained approvals from the Therapeutic Goods Administration in Australia for three products

o  Bromhexine tablet (a mucolytic), Doxylamine Succinate tablet (an antihistamine), and Ibuprofen tablet (a non-steroidal anti-inflammatory drug)

·      Secured Health Canada approval for Ketorolac tablet, a drug used for pain management

·      Earned the National Export Trophy (Gold) for a record seventh time

·      Won the Global Generics & Biosimilars (GGB) Awards 2022 in the category 'Acquisition of the Year'

Post Period Highlights

·      Launched 15 new generics (22 presentations) in the domestic market in the first quarter, of which 10 were for the first time in Bangladesh

·      Won National Export Trophy (Gold) for the eighth time

·      Nominated for the Global Generics & Biosimilars Awards 2023 as finalist in the category of "Company of the year, Asia Pacific."

Beximco Pharma Managing Director Nazmul Hassan MP commented:

"We have once again been able to deliver significant revenue growth for the financial year, which is a testament to the underlying strength of the business. Our continued focus on operational delivery meant that, over the period, we were able to launch a range of new products, attain notable regulatory approvals in key markets and continue to deliver high-quality, affordable medicines to patients around the world. However, macroeconomic factors resulting in double digit currency depreciation and inflationary pressures across our supply chain impacted our bottom line performance. As we begin the current financial year amidst these headwinds, we continually focus on strategies to address the challenges and deliver results for our shareholders."

Exchange rates of £1 = Taka 111.93 for 2021-22 numbers and £1 = Taka 136.05 for 2022-23 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 2 586/11001, Ext.20080

S M Rabbur Reza, Chief Operating Officer

Tel: +880 2 58611001, Ext.20111

Mohammad Ali Nawaz, Chief Financial Officer

Tel: +880 2 58611001, Ext.20030

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Andrew Emmott

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

SP Angel Corporate Finance LLP (Broker)

Matthew Johnson

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 5,500 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, 2023

			Amount in Taka
	June 30, 2023		June 30, 2022
ASSETS
Non-Current Assets	48,280,929,007		47,728,777,460
Property, Plant and Equipment- Carrying Value	42,245,615,338		41,593,480,364
Right-of-use Assets	562,223,398		618,891,376
Intangible Assets	4,721,034,633		4,729,838,408
Deferred Tax Asset	56,512,081		88,640,228
Goodwill	674,570,185		674,570,185
Other Investments	20,973,372		23,356,899
Current Assets	20,875,854,240		18,419,258,282
Inventories	12,133,277,975		10,405,295,079
Spares & Supplies	819,740,355		718,797,256
Accounts Receivable	3,574,654,461		3,142,817,194
Loans, Advances and Deposits	2,984,876,883		2,787,039,904
Advance Income Tax	227,618,388		196,635,028
Cash and Cash Equivalents	1,135,686,178		1,168,673,821
TOTAL ASSETS	69,156,783,247		66,148,035,742
EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company	43,680,703,738		40,600,497,817
Issued Share Capital	4,461,120,890		4,461,120,890
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	1,141,177,755		1,116,896,688
Unrealized Gain/(Loss)	18,148,196		20,531,723
Retained Earnings	30,806,194,299		27,747,885,918
Non-Controlling Interest	3,938,962,240		4,035,506,641
TOTAL EQUITY	47,619,665,978		44,636,004,458
Non-Current Liabilities	8,272,093,233		8,776,099,208
Long Term Borrowings-Net of Current Maturity	2,550,833,254		3,454,188,843
Liability for Gratuity, Pension and WPPF & Welfare Funds	3,170,764,435		2,785,072,661
Deferred Tax Liability	2,550,495,544		2,536,837,704
Current Liabilities and Provisions	13,265,024,036		12,735,932,076
Short Term Borrowings	6,621,170,271		6,850,550,319
Long Term Borrowings-Current Maturity	1,439,895,168		2,065,962,471
Creditors and Other Payables	3,531,707,176		2,478,930,393
Accrued Expenses	1,129,699,385		1,152,990,410
Dividend Payable / Unclaimed Dividend	88,465,109		88,049,428
Income Tax Payable	454,086,927		99,449,055
TOTAL EQUITY AND LIABILITIES	69,156,783,247		66,148,035,742

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the Year ended June 30, 2023

			Amount in Taka
	July 2022- June 2023		July 2021- June 2022
Net Revenue	39,266,662,237		34,669,172,052
Cost of Goods Sold	(21,953,290,466)		(18,848,962,107)
Gross Profit	17,313,371,771		15,820,209,945
Operating Expenses	(10,097,131,808)		(8,938,466,002)
Administrative Expenses	(1,180,124,415)		(1,136,591,808)
Selling, Marketing and Distribution Expenses	(8,917,007,393)		(7,801,874,194)
Profit from Operations	7,216,239,963		6,881,743,943
Other Income	452,657,744		1,166,259,166
Finance Cost	(1,285,698,253)		(1,001,835,523)
Profit Before Contribution to WPPF & Welfare Funds	6,383,199,454		7,046,167,586
Contribution to WPPF & Welfare Funds	(314,430,512)		(359,222,585)
Profit Before Tax	6,068,768,942		6,686,945,001
Income Tax Expenses	(1,544,300,452)		(1,688,316,804)
Current Tax	(1,468,598,852)		(1,191,180,488)
Deferred Tax Income/ (Expense)	(75,701,600)		(497,136,316)
Profit After Tax	4,524,468,490		4,998,628,197
Profit/(Loss) Attributable to:
Owners of the Company	4,614,066,147		5,123,136,712
Non-Controlling Interest	(89,597,657)		(124,508,515)
	4,524,468,490		4,998,628,197
Other Comprehensive Income/(Loss)	(2,383,527)		6,764,517
Total Comprehensive Income	4,522,084,963		5,005,392,714
Total Comprehensive Income Attributable to:
Owners of the Company	4,611,682,620		5,129,901,229
Non-Controlling Interest	(89,597,657)		(124,508,515)
	4,522,084,963		5,005,392,714
Earnings Per Share (EPS)	10.34		11.48

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Changes in Equity

For the Year Ended June 30, 2023

As at June 30, 2023
	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, 2022	4,461,120,890	5,269,474,690	1,689,636,958	294,950,950		1,116,896,688		20,531,723	27,747,885,918	40,600,497,817	4,035,506,641	44,636,004,458
Total Comprehensive Income:
Profit for the Year	-	-	-	-		-		-	4,614,066,147	4,614,066,147	(89,597,657)	4,524,468,490
Other Comprehensive Income/(Loss)	-	-	-	-		-		(2,383,527)	-	(2,383,527)	-	(2,383,527)
Transfer from deferred tax	-	-	-	-		28,647,841		-	-	28,647,841	-	28,647,841
Transactions with the Shareholders:
Cash Dividend	-	-	-	-		-		-	(1,561,392,312)	(1,561,392,312)	(6,946,744)	(1,568,339,056)
Adjustment for Depreciation on Revalued Assets	-	-	-	-		(5,634,546)		-	5,634,546	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-		1,267,772		-	-	1,267,772	-	1,267,772
Balance as on June 30, 2023	4,461,120,890	5,269,474,690	1,689,636,958	294,950,950		1,141,177,755		18,148,196	30,806,194,299	43,680,703,738	3,938,962,240	47,619,665,978
Number of Shares Net Asset Value (NAV) Per Share									Tk.	446,112,089 97.91

As at June 30, 2022
	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, 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
NCI at the date of acquisition-SPP	-	-	-	-	-	-	-	-	3,857,134,718	3,857,134,718
Total Comprehensive Income:
Profit for the Year	-	-	-	-	-	-	5,123,136,712	5,123,136,712	(124,508,515)	4,998,628,197
Other Comprehensive Income/(Loss)	-	-	-	-	-	6,764,517	-	6,764,517	-	6,764,517
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(1,561,392,312)	(1,561,392,312)	(31,426,189)	(1,592,818,501)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(6,358,656)	-	6,358,656	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	1,430,698	-	-	1,430,698	-	1,430,698
Balance as on June 30, 2022	4,461,120,890	5,269,474,690	1,689,636,958	294,950,950	1,116,896,688	20,531,723	27,747,885,918	40,600,497,817	4,035,506,641	44,636,004,458
Number of Shares Net Asset Value (NAV) Per Share							Tk.	446,112,089 91.01

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Cash Flows

For the Year ended June 30, 2023

			Amount in Taka
	July 2022-June 2023		July 2021- June 2022
Cash Flows from Operating Activities:
Receipts from Customers and Others	39,440,236,428		36,145,521,249
Payments to Suppliers and Employees	(30,943,666,211)		(28,584,815,294)
Cash Generated from Operations	8,496,570,217		7,560,705,955
Interest Paid	(1,272,368,534)		(1,002,350,838)
Interest Received	5,529,516		3,055,358
Income Tax Paid	(1,144,944,341)		(1,347,234,025)
Net Cash Generated from Operating Activities	6,084,786,858		5,214,176,450
Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment	(2,410,765,411)		(2,815,211,828)
Intangible Assets	(299,262,244)		(124,286,166)
Investment in Subsidiary	-		(4,766,635,704)
Disposal of Property, Plant and Equipment	23,353,504		24,063,832
Disposal of Intangible Assets	67,725,000		-
Dividend Received	1,931,517		2,015,444
Net Cash Used in Investing Activities	(2,617,017,634)		(7,680,054,422)
Cash Flows from Financing Activities:
Net Increase /(Decrease) in Long Term Borrowings	(1,763,267,386)		2,730,647,211
Net Increase/(Decrease) in Short Term Borrowings	(229,380,048)		1,507,676,748
Dividend Paid	(1,567,923,375)		(1,623,098,759)
Net Cash (Used in) / from Financing Activities	(3,560,570,809)		2,615,225,200
Increase/(Decrease) in Cash and Cash Equivalents	(92,801,585)		149,347,228
Cash and Cash Equivalents at Beginning of Year	1,168,673,821		973,963,625
Effect of Exchange Rate Changes on Cash and Cash Equivalents	59,813,942		45,362,968
Cash and Cash Equivalents at End of Year	1,135,686,178		1,168,673,821
Net Operating Cash Flows Per Share	13.64		11.69

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