Renata's revenue, profit surged by 14%, 55% in FY24

Infographic: TBS

Renata – one of the top pharmaceutical companies in Bangladesh – achieved a 14% increase in revenue, while its consolidated net profit soared by 55% in the fiscal 2023-24.

The drug manufacturer announced its annual financial results during a meeting held on Saturday at its head office in Mirpur, according to company sources.

In the last fiscal year, Renata reported consolidated revenue of Tk3,771 crore, with a net profit of Tk361 crore.

Company Secretary Jubayer Alam told The Business Standard, "We achieved the highest growth among the top five pharmaceutical companies in Bangladesh, significantly outpacing the industry's overall growth rate of 7.2%."

He further noted that Renata has climbed two spots in terms of prescription share, now ranking third in the industry.

In a statement, the company highlighted that its animal health division maintained its position as the market leader, achieving a growth rate of 9.3%, surpassing the overall market growth of 6.07%.

The statement also noted that while exports saw modest growth of 4.2%, Renata expanded its international presence to 50 countries, with notable new markets including the USA and Australia.

The company's statement explained that profit growth in the last fiscal year was driven by cost-cutting measures, reduced finance costs, and robust business expansion. This marks a strong recovery from the previous fiscal year, when profits had significantly declined due to foreign currency exchange losses.

Meanwhile, the company's board has recommended a 92% cash dividend for shareholders for the last fiscal year, a significant increase from the 62.5% cash dividend paid in the previous year.

To approve the dividend and the audited financial statement, the drugmaker will conduct its annual general meeting on 5 December through a digital platform. The record date is set for 2 October.

Renata's shares closed at Tk740.30 on Thursday on the Dhaka Stock Exchange (DSE), with a market capitalisation of Tk8,491 crore, making it the ninth-largest stock on the bourse.

In June, the company secured a $60 million loan from the US-based International Finance Corporation (IFC) to bolster its working capital.

In January, the Bangladesh Securities and Exchange Commission (BSEC) approved Renata to issue a five-year bond worth Tk660.15 crore.

In April, the regulator allowed the drugmaker to issue redeemable, cumulative, non-convertible, and non-participative preference shares amounting to Tk350 crore through a private offer.

Renata was founded in 1972 as Pfizer Laboratories (Bangladesh) and has since grown to become a major player in both domestic and international markets. In 1993, Pfizer transferred ownership of its Bangladesh operations to local shareholders, and the company was renamed Renata Limited.

As of August, sponsors and directors hold a 51.29% stake in Renata, while institutional investors own 20.71%, foreign investors hold 21.41%, and general shareholders have 6.59%, according to the DSE.