Beximco Pharmaceuticals Ltd. — Interim / Quarterly Report 2021

Jan 28, 2021

National Storage Mechanism | Additional information

RNS Number : 1229N

Beximco Pharmaceuticals Ltd

28 January 2021

28 January 2021

BEXIMCO PHARMACEUTICALS LIMITED

Half Year Results 2020-21

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 unaudited financial results for the six months ended 31 December 2020.

Financial highlights

Half year financial highlights

·  Net sales increased 15.2% to Bangladesh Taka ("BDT") 14,400.2m / £125.8m (2019-20: BDT 12,495.5m / £112.6m)

o  Domestic sales increased 17.1% to BDT 13,005.6m / £113.6m (2019-20: BDT 11,101.8m / £100.0m)

o  Achieved Export sales of BDT 1,394.6m / £12.2m (2019-20: BDT 1,393.7m / £12.6m)

·      Profit after tax increased 29.8% to BDT 2,226.3m / £19.4m (2019-20: BDT 1,715.3m / £15.5m)

Second quarter financial highlights

·      Net sales increased 20.7% to BDT 7,474.3m / £65.3m (2019-20: BDT 6,192.2m / £55.8m)

·      Profit after tax increased 35.1% to BDT 1,141.9m / £9.9m (2019-20: BDT 845.5m / £7.6m)

Operational highlights

·      Domestic market

o  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  Launched thirteen new products (eighteen presentation forms and strengths) in the domestic market, including the introduction of four products to Bangladesh for the first time

§ Launched an advanced formulation of esomeprazole MUPS (multiple-unit pellet system), an anti-ulcerant, under the brand Remmo®

·      US market

o  Commenced export of Cyproheptadine, an antihistamine product, to the US

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

o  Filed ANDA (Abbreviated New Drug Application) to US Food and Drug Administration for Eletriptan Hydrobromide, a treatment for migraine symptoms

·      RoW

o  Completed 13 registrations for 12 products in 9 countries

o  Entered five new countries (Oman, Lebanon, Venezuela, Bolivia, and Kosovo)

·      Joined a group of world's leading generic pharmaceutical manufacturers who have pledged to work together via the Medicines Patent Pool to support the fight against COVID-19 in low- and middle-income countries

·      Won the highly prestigious "CPhl Pharma Awards" in the category of 'Innovation in Response to COVID-19'

Post period

·      Entered into a binding commitment with Sanofi group to acquire a majority stake (54.6%) in Sanofi Bangladesh Limited, subject to approval by the Foreign Exchange Investment Department of Bangladesh Bank and completing the Share Purchase Agreement

·      Received the first planned consignment of five million doses of the Oxford/AstraZeneca COVID-19 vaccine from Serum Institute of India for onward delivery to the government of Bangladesh

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

"We have delivered strong results in the first half of the year that demonstrate the resilience of the business and reinforce our commitment to ensure an uninterrupted supply of medicines despite macroeconomic headwinds caused by the ongoing COVID-19 pandemic. We have also demonstrated our continued commitment to delivering high-quality products and breakthrough therapies to the growing market in Bangladesh. In addition to expanding our product pipeline, we continue to strengthen our global footprint in line with our growth strategy. Looking ahead, we maintain a positive outlook for FY21 and reiterate, in line with the announcement on 14 January 2021, that while the costings of our vaccine distribution have yet to be determined, we expect to see a positive material difference to the Company's year-end results."

The half yearly accounts can be viewed at the Company's website: www.beximcopharma.com

(Exchange rates of £1 = Taka 114.48 for 31 December 2020 numbers and £1 = Taka 111.0152 for 31 December 2019 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 Ali Nawaz, Chief Financial Officer

Tel: +880 2 58611001, Ext. 20030

Jamal Ahmed Choudhury, Executive Director (A&F)

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 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 (Unaudited)

As at December 31, 2020

						Taka '000
	December 31, 2020				June 30, 2020
ASSETS
Non-Current Assets	37,372,535				37,069,663
Property, Plant and Equipment- Carrying Value		35,341,190				35,000,810
Right-of-use Assets		234,574				240,164
Intangible Assets		1,238,826				1,275,561
Goodwill		546,691				546,691
Other Investment		11,254				3,751
Other Non-current Assets		-				2,686
Current Assets	13,816,614				13,049,079
Inventories		6,769,702				5,944,769
Spares & Supplies		858,381				775,529
Accounts Receivable		2,909,203				3,305,451
Loans, Advances and Deposits		2,884,723				2,388,313
Cash and Cash Equivalents		394,605				635,017
TOTAL ASSETS	51,189,149				50,118,742
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company	34,103,871				32,495,121
Issued Share Capital		4,461,120				4,055,564
Share Premium		5,269,475				5,269,475
Excess of Issue Price over Face Value of GDRs		1,689,637				1,689,637
Capital Reserve on Merger		294,951				294,951
Revaluation Surplus		1,123,076				1,125,768
Unrealized Gain/(Loss)		8,429				926
Retained Earnings		21,257,183				20,058,800
Non-Controlling Interest	313,866				302,329
TOTAL EQUITY	34,417,737				32,797,450
Non-Current Liabilities	5,951,596				5,963,327
Long Term Borrowings-Net of Current Maturity		1,408,265				1,651,590
Liability for Gratuity and WPPF & Welfare Funds		2,348,485				2,144,053
Deferred Tax Liability		2,194,846				2,167,684
Current Liabilities and Provisions	10,819,816				11,357,965
Short Term Borrowings		6,359,665				7,398,361
Long Term Borrowings-Current Maturity		1,169,234				1,454,312
Creditors and Other Payables		1,198,349				1,397,817
Accrued Expenses		847,009				739,513
Dividend Payable / Unclaimed Dividend		689,788				82,075
Income Tax Payable		555,771				285,887
TOTAL EQUITY AND LIABILITIES	51,189,149				50,118,742

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

For the Half Year Ended December 31, 2020

										Taka '000
	July -			July -			October -			October -
	December			December			December			December
	2020	2019			2020			2019
Net Revenue	14,400,189	12,495,526			7,474,259			6,192,191
Cost of Goods Sold	(7,568,599)	(6,687,655)			(3,932,210)			(3,325,974)
Gross Profit	6,831,590	5,807,871			3,542,049			2,866,217
Operating Expenses	(3,364,722)	(3,049,977)			(1,744,949)			(1,541,859)
Administrative Expenses	(403,632)		(388,704)			(206,306)			(200,227)
Selling, Marketing and Distribution Expenses	(2,961,090)		(2,661,273)			(1,538,643)			(1,341,632)
Profit from Operations	3,466,868		2,757,894			1,797,100			1,324,358
Other Income	169,913	136,765			75,817			76,645
Finance Cost	(502,855)	(532,325)			(269,459)			(228,287)
Profit Before Contribution to WPPF & Welfare Funds
3,133,926	2,362,334	1,603,458	1,172,716
Contribution to WPPF & Welfare Funds	(151,915)	(114,467)			(78,529)			(57,316)
Profit Before Tax	2,982,011	2,247,867			1,524,929			1,115,400
Income Tax Expenses	(755,712)	(532,521)			(382,971)			(269,929)
Current Tax	(727,652)		(528,146)			(368,973)			(257,488)
Deferred Tax	(28,060)		(4,375)			(13,998)			(12,441)
Profit After Tax	2,226,299		1,715,346			1,141,958			845,471
Profit/(Loss) Attributable to:
Owners of the Company	2,208,684		1,706,419			1,134,206			841,659
Non-controlling interest	17,615		8,927			7,752			3,812
	2,226,299	1,715,346			1,141,958			845,471
Other Comprehensive Income-Unrealized Gain/(Loss)	7,503	(1,444)			5,606			(773)
Total Comprehensive Income	2,233,802			1,713,902			1,147,564			844,698
Total Comprehensive Income Attributable to:
Owners of the Company	2,216,187		1,704,975			1,139,812			840,886
Non-controlling interest	17,615		8,927			7,752			3,812
	2,233,802		1,713,902			1,147,564			844,698
Earnings Per Share (EPS)/Restated EPS	4.95	3.83			2.54			1.89
Number of Shares Used to Compute EPS	446,112,089	446,112,089			446,112,089			446,112,089

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Changes in Equity (Unaudited)

For the Half Year Ended December 31, 2020

As at December 31, 2020										Taka' 000
	Share	Share	Excess of	Capital	Revaluation	Unrealized	Retained	Equity	Non-	Total
	Capital	Premium	Issue	Reserve	Surplus	Gain/(Loss)	Earnings	attributable	Controlling	Equity
			Price over	on				to the	Interests
			Face Value	Merger				Owners
			of GDRs					of the
								Company
Balance as on July 01, 2020	4,055,564	5,269,475	1,689,637	294,951	1,125,768	926	20,058,800	32,495,121	302,329	32,797,450
Total Comprehensive Income:
Profit/(Loss) for the Period	-	-	-	-	-	-	2,208,684	2,208,684	17,615	2,226,299
Other Comprehensive Income/(Loss)	-	-	-	-	-	7,503	-	7,503	-	7,503
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(608,335)	(608,335)	(6,078)	(614,413)
Stock Dividend	405,556	-	-	-	-	-	(405,556)	-	-	-
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(3,590)	-	3,590	-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	898	-	-	898	-	898
Balance as on December 31, 2020	4,461,120	5,269,475	1,689,637	294,951	1,123,076	8,429	21,257,183	34,103,871	313,866	34,417,737
Number of Shares								446,112,089
Net Asset Value (NAV) Per Share							Tk.	76.45
As at December 31, 2019										Taka' 000
	Share	Share	Excess of	Capital	Revaluation	Unrealized	Retained	Equity	Non-	Total
	Capital	Premium	Issue	Reserve	Surplus	Gain/(Loss)	Earnings	attributable	Controlling	Equity
			Price over	on				to the	Interests
			Face Value	Merger				Owners
			of GDRs					of the
								Company
Balance as on July 01, 2019	4,055,564	5,269,475	1,689,637	294,951	1,131,853	2,504	17,144,333	29,588,317	276,007	29,864,324
Total Comprehensive Income:
Profit/(Loss) for the Period	-	-	-	-	-	-	1,706,419	1,706,419	8,927	1,715,346
Other Comprehensive Income/(Loss)	-	-	-	-	-	(1,444)	-	(1,444)	-	(1,444)
Transactions with the Shareholders:
Cash Dividend	-	-	-	-	-	-	(608,335)	(608,335)	(3,473)	(611,808)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(4,057)	-	4,057	-	-	-
Balance as on December 31, 2019	4,055,564	5,269,475	1,689,637	294,951	1,127,796	1,060	18,246,474	30,684,957	281,461	30,966,418
Number of Shares								405,556,445
Net Asset Value (NAV) Per Share								75.66

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

For the Half Year Ended December 31, 2020

					Taka '000
	July - December		July - December
	2020		2019
Cash Flows from Operating Activities :
Receipts from Customers and Others		14,968,135		12,970,054
Payments to Suppliers and Employees		(11,819,166)		(8,533,250)
Cash Generated from Operations		3,148,969		4,436,804
Interest Paid	(502,855)		(532,325)
Interest Received	1,318		15,547
Income Tax Paid	(457,768)		(212,520)
Net Cash Generated from Operating Activities	2,189,664		3,707,506
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment		(864,972)		(1,309,616)
Intangible Assets		(8,819)		(13,065)
Disposal of Property, Plant and Equipment		21,171		3,342
Decrease in Short Term Investment		-		127,785
Net Cash Used in Investing Activities		(852,620)		(1,191,554)
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings		(532,178)		(750,702)
Net Increase/(Decrease) in Short Term Borrowings		(1,038,577)		(1,875,555)
Dividend Paid		(6,701)		(3,862)
Net Cash (Used in ) / from Financing Activities		(1,577,456)		(2,630,119)
Increase/(Decrease) in Cash and Cash Equivalents	(240,412)		(114,167)
Cash and Cash Equivalents at Beginning of Period	635,017		610,494
Effect of exchange rate changes on Cash and Cash Equivalents*	-		606
Cash and Cash Equivalents at End of Period		394,605			496,933
Net Operating Cash Flow Per Share	4.91		9.14

*The Company used Janata Bank's end of periods US Dollar-BDT exchange rates as on 31 December 2020 which remained unchanged with the exchange rates as at 30 June 2020. As such there was no effect of exchange rates in the cash flow.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR SEDFWWEFSEIF