Beximco Pharmaceuticals Ltd.

Earnings Release • Jan 29, 2020

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RNS Number : 2195B

Beximco Pharmaceuticals Ltd

29 January 2020

29 January 2020

BEXIMCO PHARMACEUTICALS LIMITED

Half Year Results 2019-20

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 2019.

Financial highlights

Half year financial highlights (consolidated)

·      Net sales increased 12.5% to Bangladesh Taka ("BDT") 12,495.5m / £112.6m (2018-19: BDT 11,109.8m / £103.8m)

·      Domestic sales increased 12.4% to BDT 11,101.8m / £100.0m (2018-19: 9,874.0m / £92.3m)

·      Export sales increased 12.8% to BDT 1,393.7m / £12.6m (2018-19: BDT 1,235.8m / £11.5m)

·      Profit after tax increased 16.7% to BDT 1,735.4m / £15.6m (2018-19: BDT 1,487.2m / £13.9m)

Second quarter financial highlights

·      Net sales increased 8.2% to BDT 6,192.2m / £55.8m (2018-19: BDT 5,724.7m / £53.5m)

·      Profit after tax increased 18.0% to BDT 865.5m / £7.8m (2018-19: BDT 733.5m / £6.9m)

Operational highlights

·      Eleven new products launched in the domestic market

·      Completed 23 registrations for 18 products in 14 countries

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

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

·      Received regulatory approval from Malta Medicines Authority (European Union)

·      Entered two new countries (Nicaragua and Maldives)

·      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:

"Beximco Pharma has delivered further strong growth during the period. In line with our strategy to maintain growth in Bangladesh while expanding our exports business, net sales have continued to grow at double-digit rates, both domestically and abroad. This strategy has been further borne out by our operational successes in which we have seen the launch of Maxhaler mDPI in Bangladesh, bolstering our domestic respiratory portfolio, as well as the launch of Nadalol in the US, one of our key export markets. These developments represent a positive start to the year, which we plan to continue moving forward."

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

(Exchange rates of £1 = Taka 111.0152 for 31 December 2019 numbers and £1 = Taka 107.0312 for 31 December 2018 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, injectable, nebulizer 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 4,500 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 31 December 2019

				Taka '000
		As at 31 December 2019		As at 30 June 2019
ASSETS
Non-Current Assets		36,721,861		35,949,931
Property, Plant and Equipment- Carrying Value		34,860,496		34,056,667
Intangible Assets		1,310,789		1,334,922
Goodwill		546,691		546,691
Other Investment		3,885		5,329
Other Non-current Assets		-		6,322
Current Assets		11,958,181		13,264,161
Inventories		5,471,403		5,924,031
Spares & Supplies		646,154		726,127
Accounts Receivable		3,080,861		3,334,959
Loans, Advances and Deposits		2,067,250		2,309,504
Advance Income Tax		-		35,681
Short Term Investment		195,580		323,365
Cash and Cash Equivalents		496,933		610,494
TOTAL ASSETS		48,680,042		49,214,092
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company		30,684,957		29,588,317
Issued Share Capital		4,055,564		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		1,127,796		1,131,853
Unrealised Gain / (Loss)		1,060		2,504
Retained Earnings		18,246,474		17,144,333
Non-Controlling Interest		281,461		276,007
TOTAL EQUITY		30,966,418		29,864,324
Non-Current Liabilities		5,981,804		6,603,936
Long Term Borrowings-Net of Current Maturity		1,902,522		2,595,608
Liability for Gratuity and WPPF & Welfare Funds		1,927,484		1,860,905
Deferred Tax Liability		2,151,798		2,147,423
Current Liabilities and Provisions		11,731,820		12,745,832
Short Term Borrowings		7,396,947		9,272,501
Long Term Borrowings-Current Maturity		1,569,401		1,616,671
Creditors and Other Payables		1,058,797		1,091,810
Accrued Expenses		644,251		590,317
Dividend Payable		615,180		7,235
Income Tax Payable		447,244		167,298
TOTAL EQUITY AND LIABILITIES		48,680,042		49,214,092

Beximco Pharmaceuticals Limited and its Subsidiaries

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

For the Half Year Ended 31 December 2019

								Taka '000
		July - December 2019		July - December 2018		2nd Quarter (Oct-Dec) 2019		2nd Quarter (Oct-Dec) 2018
Net Revenue		12,495,526		11,109,798		6,192,191		5,724,672
Cost of Goods Sold		(6,687,655)		(5,939,756)		(3,325,974)		(3,084,613)
Gross Profit		5,807,871		5,170,042		2,866,217		2,640,059
Operating Expenses		(3,049,977)		(2,684,899)		(1,541,859)		(1,385,122)
Administrative Expenses		(388,704)		(365,072)		(200,227)		(200,770)
Selling, Marketing and Distribution Expenses		(2,661,273)		(2,319,827)		(1,341,632)		(1,184,352)
Profit from Operations		2,757,894		2,485,143		1,324,358		1,254,937
Other Income		156,792		30,531		96,672		10,011
Finance Cost		(532,325)		(482,180)		(228,287)		(253,363)
Profit Before Contribution to WPPF & Welfare Funds		2,382,361		2,033,494		1,192,743		1,011,585
Contribution to WPPF & Welfare Funds		(114,467)		(97,838)		(57,316)		(48,673)
Profit Before Tax		2,267,894		1,935,656		1,135,427		962,912
Income Tax Expenses		(532,521)		(448,434)		(269,929)		(229,406)
Current Tax		(528,146)		(489,153)		(257,488)		(236,325)
Deferred Tax Income/ (Expense)		(4,375)		40,719		(12,441)		6,919
Profit After Tax		1,735,373		1,487,222		865,498		733,506
Profit/(Loss) Attributable to:
Owners of the Company		1,726,446		1,488,403		861,686		733,472
Non-controlling interest		8,927		(1,181)		3,812		34
		1,735,373		1,487,222		865,498		733,506
Other Comprehensive Income-Unrealised Gain / (Loss)		(1,444)		(1,350)		(773)		(265)
Total Comprehensive Income		1,733,929		1,485,872		864,725		733,241
Total Comprehensive Income Attributable to:
Owners of the Company		1,725,002		1,487,053		860,913		733,207
Non-controlling interest		8,927		(1,181)		3,812		34
		1,733,929		1,485,872		864,725		733,241
Earnings Per Share (EPS)	Tk.	4.26		3.67		2.12		1.81
Number of Shares Used to Compute EPS	Nos.	405,556,445		405,556,445		405,556,445		405,556,445

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Changes in Equity (Unaudited)

For the Half Year Ended 31 December 2019

For the Half Year Ended 31 December 2019									Taka '000
	Share Capital	Share Premium	Excess of Issue Price over Face Value of GDRs	Capital Reserve on Merger	Revaluation Surplus	Unrealised Gain / (Loss)	Retained Earnings	Equity Attributable to the Owners of the Company	Non-Controlling Interests	Total Equity
Balance as on 1 July 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	-	-	-	-	-	-	1,726,446	1,726,446	8,927	1,735,373
Other Comprehensive Income / (Loss)	-	-	-	-	-	(1,444)	-	(1,444)	-	(1,444)
Cash Dividend	-	-	-	-	-	-	(608,335)	(608,335)	-	(608,335)
Cash Dividend NPL	-	-	-	-	-	-	(20,027)	(20,027)	(3,473)	(23,500)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(4,057)	-	4,057	-	-	-
Balance as on 31December 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							Tk.	75.66

For the Half Year Ended 31 December 2018											Taka '000
	Share Capital	Share Premium	Excess of Issue Price over Face Value of GDRs	Capital Reserve on Merger	Revaluation Surplus	Unrealised Gain / (Loss)	Retained Earnings		Equity Attributable to the Owners of the Company	Non-Controlling Interests	Total Equity
Balance as on 1 July 2018	4,055,564	5,269,475	1,689,637	294,951	1,159,278	4,357	14,608,701		27,081,963	269,874	27,351,837
Total Comprehensive Income for the period:
Profit/ (Loss) for the Period	-	-	-	-	-	-	1,488,403		1,488,403	(1,181)	1,487,222
Other Comprehensive Income / (Loss)	-	-	-	-	-	(1,350)	-		(1,350)	-	(1,350)
Cash Dividend	-	-	-	-	-	-	(506,945)		(506,945)	(868)	(507,813)
Adjustment for Depreciation on Revalued Assets	-	-	-	-	(4,588)	-	4,588		-	-	-
Adjustment for Deferred Tax on Revalued Assets	-	-	-	-	(19,396)	-	-		(19,396)	-	(19,396)
Balance as on 31 December 2018	4,055,564	5,269,475	1,689,637	294,951	1,135,294	3,007	15,594,747		28,042,675	267,825	28,310,500
Number of Shares									405,556,445
Net Asset Value (NAV) Per Share							Tk.		69.15

Beximco Pharmaceuticals Limited and its Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)

For the Half Year Ended 31 December 2019

				Taka '000
		July - December 2019		July - December 2018
Cash Flows from Operating Activities:
Receipts from Customers and Others		12,970,054		10,864,946
Payments to Suppliers and Employees		(8,533,250)		(9,279,882)
Cash Generated from Operations		4,436,804		1,585,064
Interest Paid		(532,325)		(482,180)
Interest Received		15,547		18,132
Income Tax Paid		(212,520)		(267,848)
Net Cash Generated from Operating Activities		3,707,506		853,168
Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment		(1,309,616)		(876,834)
Intangible Assets		(13,065)		(10,604)
Investment in Subsidiary		-		(20,000)
Disposal of Property, Plant and Equipment		3,342		1,806
Dividend Received		20,027		-
(Increase) / Decrease in Short Term Investment		127,785		(17,230)
Net Cash Used in Investing Activities		(1,171,527)		(922,862)
Cash Flows from Financing Activities:
Net Increase/(Decrease) in Long Term Borrowings		(750,702)		(654,507)
Net Increase/(Decrease) in Short Term Borrowings		(1,875,555)		831,186
Dividend Paid		(23,889)		(1,187)
Net Cash Used in Financing Activities		(2,650,146)		175,492
Increase / (Decrease) in Cash and Cash Equivalents		(114,167)		105,798
Cash and Cash Equivalents at Beginning of Period		610,494		393,736
Effect of exchange rate changes on Cash and Cash Equivalents		606		77
Cash and Cash Equivalents at End of Period		496,933		499,611
Net Operating Cash Flow Per Share		9.14		2.10
Number of Shares Used to Compute Net Operating Cash Flow Per Share		405,556,445		405,556,445

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