Renata delivers 25% profit growth in Jul-Dec
Exports in Q2 fell 23% as orders deferred after inventory damaged in Dhaka airport fire
Renata PLC, one of the country's leading drug makers, posted double-digit profit growth of 25% year on year in the first half of the current fiscal year, driven by revenue growth, lower cost of goods sold and sharply reduced financing costs.
According to its financial statements, consolidated profit rose to Tk156.26 crore in July-December, with earnings per share of Tk13.58, up from Tk125.08 crore and Tk10.83 in the same period of the previous fiscal year. Consolidated revenue increased by 6.56% to Tk2,223.84 crore during the period.
In a press release, Renata said revenue from pharmaceutical products, which account for 80.7% of total revenue, grew by 10%, driven entirely by volume growth, while its animal health business remained flat year on year.
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Export revenue, including subsidiary income, declined by 10.1%, while revenue from contract manufacturing fell by 28.4%.
The company said export revenue rose by 8.2% in the first quarter of FY26 but dropped by 23.4% in the second quarter, mainly due to deferred orders after inventory meant for exports was damaged in a fire at Dhaka airport on 19 October 2025.
Renata said the damaged inventory has been reordered and export order fulfilment will resume in subsequent quarters.
The decline in contract manufacturing revenue was attributed to reduced government procurement following the mass uprising of July-August 2024, which the company expects to improve after the elections.
Renata said operational efficiency was reflected in a 20.6% rise in earnings before interest, tax, depreciation and amortisation for the six months to December, as material costs rose by only 3.9% against revenue growth of 6.6%.
Lower raw material costs resulted from strong supplier negotiations and access to US dollar-denominated funding from the IFC, which reduced foreign exchange volatility amid a relatively stable exchange rate environment.
The company also reported a 7.3% reduction in financing costs following the completion of its capital restructuring, including full drawdown of low-cost IFC funding and full subscription of Tk325 crore in preference shares.
Renata said continued efforts to reduce working capital led to a Tk390 crore reduction in debt during the second quarter.
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