Top drugmakers log double-digit revenue growth in Jul-Mar

Infographics: TBS

Despite high inflation constraining people's spending capacity, the country's top drugmakers listed on stock exchanges have posted double-digit growth in revenue in the first nine months of the ongoing fiscal year.

The top six pharmaceutical companies published their unaudited financial statements for July-March, with IBN Sina Pharma posting the highest revenue growth of 26% year-on-year, reaching Tk837 crore. 

Navana Pharma and ACME Laboratories both logged 19% growth in revenue, reaching Tk503 crore and Tk2,353 crore, respectively.

Among the top three firms in the country's pharma sector, Square Pharma secured a 13% growth in revenue, reaching Tk6,286 crore, which was the highest among its peers. 

Renata posted a revenue increase of 14% to Tk2,781 crore, while Beximco Pharma recorded a 13% increase to Tk3,305 crore.

Market insiders said during a challenging economic period marked by high inflation, the spread of diseases proved to be an advantage for drugmakers, as people were compelled to purchase medicines. 

However, Square Pharma, ACME Laboratories, and Renata could not shield themselves from the impact of inflation, which led to a significant increase in expenditures for the purchase of raw materials, as reported in their financial statements.

During the period, despite the three firms securing double-digit revenue growth, Square Pharma's profit rose by 9% to reach Tk1,464 crore. ACME Laboratories logged a 7% growth in profit to Tk180 crore, while Renata's profit fell by 4% to Tk258 crore.

Only Beximco Pharma, IBN Sina Pharma, and Navana Pharma posted double-digit growth in profit.

Iqbal Ahmed, managing director of Beximco Pharmaceuticals, stated on the London Stock Exchange, "I am pleased to report strong double-digit growth for the period, despite the impact of macroeconomic headwinds, including challenging exchange rates and elevated domestic inflation."

Jubayer Alam, company secretary at Renata, told The Business Standard that buoyed by moderate revenue growth coupled with significant cost management, net profit grew by 21.4% in January-March, while profit growth from July to March was slightly negative. 

He further explained, "As our costs increased significantly due to currency devaluation, high interest expenses, and depreciation from new capital investments, we embarked on a strategic cost management programme that has begun to yield results."

Square Pharma's Chief Financial Officer Muhammad Zahangir Alam explained that while their revenue surged, profitability didn't rise at the same pace due to escalating business costs. 

"Over the last few years, operational expenses have notably increased, yet many medicine prices have remained stagnant, hindering their ability to offset the rising costs," he added. 

He elaborated that out of the 700 types of medicines they produce, only around 10 received approval from the drug administration for price increases in response to cost hikes.

The pharmaceutical company consistently invests to uphold world-class standards in medicine quality, which in turn enhances export opportunities. However, if profitability shrinks, sustaining such investment becomes challenging, limiting their ability to invest at the desired level, he emphasised.