Square Pharmaceuticals to invest Tk200 crore for modernisation, expansion and land acquisition

Square Pharmaceuticals Ltd has posted a nine percent annual growth in its consolidated earnings per share in the last financial year.

Its board of directors has approved a plan to set aside Tk200 crore for investment in balancing, modernisation, rehabilitation, expansion (BMRE), procuring, setting up new machinery and buying land for future expansion of the company.

"The investment is part of our regular operation and expansion plan. Each year we allocate a portion of our profit for that", said Khandaker Habibuzzaman, the company secretary of Square Pharmaceuticals.  

"Old machinery needs to be upgraded, and we also need new machinery in the plants. Acquisition of land near the factory is also included in the investment plan with a view to facilitate expansions in the future," he added.   

In its board meeting on Tuesday afternoon, Square Pharmaceuticals' board of directors recommended 42 percent cash and seven percent stock dividends to shareholders for the financial year 2018-19 that ended on June 30.

As the accounting year ends, the pharmaceutical company alone had posted annual net profit or earnings per share of Tk15.96, up from Tk12.02 in the previous year. Its net asset value per share increased to Tk77.07 from Tk59.14 a year ago.

The company's standalone net operating cash flow per share over the year increased to Tk15.96 from Tk12.02 in the previous year.  

Including the financials of Square Pharmaceuticals' foreign subsidiary Square Pharmaceuticals Kenya EPZ Ltd and three local associate companies named Square Textiles Ltd, Square Fashions Ltd and Square Hospitals Ltd, the company's consolidated earnings per share for the financial year 2018-19 stands at Tk15.71, up from Tk12.55 in the previous year. Its consolidated net asset value per share increased from Tk73.28 to Tk86.03.

If a company holds over half of another company's shares, the second one is called a subsidiary, and if the shareholding is below 50 percent it is called an associate company of the first one.

Annual general meeting and Record date

Shareholders of Square Pharmaceuticals will attend the 53rd annual general meeting scheduled for December 12, 2019 at the Dhaka Club Ltd. There they will consider the proposals to approve the company's financial statements, dividend and all other agenda.

The company declared November 19, 2019 as the record date on which its shares will not be traded at the stock exchanges and the company will identify its shareholders.

Square Pharmaceuticals Ltd

Launched in 1958, Square Pharmaceuticals emerged as the industry leader in the mid-1980s, and got listed on the local stock exchange in the mid-1990s.

Its latest annual report reveals that the company, with around 17 percent market share, is selling a wide range of pharmaceutical products worth over Tk4,500 crore per year.

Moreover, it currently exports its products to over 40 countries, and that is expected to increase further in coming days.

It is a cash-rich company with no debt for the last few years.

The price of Square Pharmaceuticals' share closed at Tk238.3 each in the Dhaka Stock Exchange on Wednesday.