29th Jul 2011 07:00
BEXIMCO PHARMACEUTICALS LTD.
29th July, 2011
Half Year Results - 2011
Beximco Pharmaceuticals Limited ("BPL" or "Company"; AIM Symbol: BXP) today announces its results for the half year to 30 June 2011.
Highlights
Half year financial highlights
·; Net sales increased by 22.7% to Bangladesh Taka ("BDT") 3,642.3m / £30.5m (2010: BDT 2,968.7 m / £27.3m)
o Domestic sales increased 22.8% to BDT 3,468.8m / £29.1m (H1 2010: BDT 2,825.9m / £26.0m)
o Export sales increased 21.6% to BDT 173.5m / £1.5m (H1 2010: BDT 142.7m / £1.3m)
·; Profit before tax increased by 9.6% to BDT 764.5m / £6.4m (H1 2010: BDT 697.3m / £6.4m)
·; EPS increased by 7.9% to BDT 2.72 / 2.3 pence (2010: BDT 2.52 / 2.3 pence)
Second quarter highlights
·; Net sales increased by 20% to BDT 1,970.6m / £16.5m (2010: BDT1,642.0m / £15.1m)
·; Profit before tax increased by 21.6% to BDT 461.4m / £3.9m (2010: BDT 379.3m / £3.5m)
Operational highlights
·; 10 new products registered in overseas markets
·; Launched 21 new products across different therapeutic classes
·; Plant and Machinery for the New MDI (Metered Dose Inhaler) facility installed and commissioned, trial production scheduled August 2011
Post-period events
·; Received GMP (Good Manufacturing Practices) accreditation from Austrian regulatory authority for Oral Solid and Sterile Eye Drop Facilities
o Approval recognized throughout European Union (EU)
Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:
"I am delighted to report another strong performance from Beximco Pharmaceuticals, achieved against a backdrop of currency pressures, a challenging global environment and strong competition in the domestic market. Our recent EU GMP approval is an important step towards becoming a global player in the lucrative generic pharmaceutical market. Approval also highlights the high standards achieved by Beximco and demonstrates the importance of continued investment in facilities, products and people, to deliver long-term sustainable growth for the Company and our shareholders."
The half yearly accounts can be viewed at the Company's website: www.beximcopharma.com
(Exchange rates of £1 = Taka 108.55 for 2010 numbers and £1 = Taka 119.25 for 2011 numbers have been used in this announcement.)
For further enquiries please contact:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 861 9151, Ext.2080
Md. Asad Ullah, FCS, Executive Director & Company Secretary
Tel; +880 2 8618220-1, Ext. 1140
Libertas Capital Corporate Finance
Jakob Kinde / Thilo Hoffmann
Tel: +44 (0)20 7569 9650
Financial Dynamics
Jonathan Birt / Susan Quigley
Tel: +44 (0)20 7269 7169
Notes to Editors
About Beximco Pharmaceuticals Limited
Founded in 1976 and based in Dhaka, Bangladesh, BPL manufactures and sells generic pharmaceutical formulation products, active pharmaceutical ingredients and intravenous fluids. The Company also manufactures and markets its own branded generics for almost all diseases. The Company also undertakes contract manufacturing for multinational pharmaceutical companies. The Company operates from a 20 acre site in Dhaka and currently employs over 2,400 staff.
The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in East Africa, Pacific Island and Central American countries and South East Asia, including Singapore and Hong Kong.
BEXIMCO PHARMACEUTICALS LIMITED
Statement of the Managing Director
Dear Valued Shareholders,
We are pleased to announce the un-audited results for the six-month period ended 30 June 2011.
The Company reported strong results with revenues of Tk. 3,642.29 million, up 22.7% from the corresponding period of 2010. Pre-tax profit and EPS stood at Tk. 764.55 million and Tk. 2.72 compared to Tk. 697.35 million and Tk. 2.52 respectively, in the previous year. During the said period there was significant devaluation of Bangladeshi taka against the US dollar. Since December 2010, taka has been depreciated by around 7% causing a rise in the cost of imported materials. However, we are working on strategies to effectively minimize the negative impact of the currency devaluation on our profitability.
The company saw introduction of 21 new products of different forms and strength across different therapeutic classes. We continued expanding our export product portfolio and in the first half we successfully registered 10 products in the overseas markets. Subsequent to the reporting period, this month in July, we have received GMP (Good Manufacturing Practices) accreditation from the regulatory authority of Austria for our Oral Solid and Sterile Eye Drop facilities. The approval received from the Austrian Drug Authority will be recognized throughout the European Union (EU) by Mutual Recognition between the member countries. This is a significant milestone for the company which should facilitate export to generic drug markets of Europe.
We are pleased with the achievement of the company during the first half of 2011. We are confident that your company will continue to perform well during the remaining period to achieve its operational and financial targets for the year 2011.
We look forward to your continued support.
Thanking you
Nazmul Hassan
Managing Director
BEXIMCO PHARMACEUTICALS LIMITED
Statement of Financial Position (Un-audited)
As at June 30, 2011
Taka ' 000 | |||
Notes | As at June 30, 2011 | As a December 31, 2010 | |
ASSETS | |||
Non-Current Assets | 15,501,256 | 15,180,732 | |
Property, Plant and Equipment- Carrying Value | 3 | 15,409,849 | 15,123,306 |
Intangible Assets | 85,108 | 51,127 | |
Investment in Shares | 6,299 | 6,299 | |
Current Assets | 6,565,112 | 6,191,667 | |
Inventories | 4 | 2,114,606 | 1,983,809 |
Spares & Supplies | 303,457 | 276,520 | |
Accounts Receivable | 895,370 | 821,356 | |
Loans, Advances and Deposits | 5 | 808,622 | 779,130 |
Short Term Investment | 958,046 | 859,404 | |
Cash and Cash Equivalents | 6 | 1,485,011 | 1,471,448 |
TOTAL ASSETS | 22,066,368 | 21,372,399 | |
EQUITY AND LIABILITIES | |||
Shareholders' Equity | 16,492,664 | 15,974,087 | |
Issued Share Capital | 2,098,065 | 2,098,065 | |
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 | 1,470,200 | 1,534,646 | |
Retained Earnings | 5,670,336 | 5,087,313 | |
Non-Current Liabilities | 3,035,646 | 2,885,156 | |
Long Term Borrowings-Net off Current Maturity (Secured) | 7 A | 1,844,160 | 1,902,151 |
Liability for Gratuity & WPPF | 426,940 | 335,886 | |
Deferred Tax Liability | 764,546 | 647,119 | |
Current Liabilities and Provisions | 2,538,058 | 2,513,156 | |
Short Term Borrowings | 1,659,404 | 1,639,961 | |
Long Term Borrowings-Current Maturity | 7 B | 329,291 | 348,860 |
Creditors and other Payables | 461,263 | 432,315 | |
Accrued Expenses | 68,266 | 90,512 | |
Dividend Payable | 1,377 | 1,508 | |
Income Tax payable | 18,457 | - | |
TOTAL EQUITY AND LIABILITIES | 22,066,368 | 21,372,399 |
BEXIMCO PHARMACEUTICALS LIMITED
Statement of Comprehensive Income (Un-audited)
For the Half Year Ended June 30, 2011
Taka ' 000 | |||||
Notes | Half-Year ended June 30, 2011 | Half-Year ended June 30, 2010 | 2nd Quarter (April - June) 2011 | 2nd Quarter (April - June) 2010 | |
Net Sales Revenue | 3,642,293 | 2,968,654 | 1,970,552 | 1,642,053 | |
Cost of Goods Sold | 8 | (1,920,911) | (1,484,263) | (1,011,947) | (789,784) |
Gross Profit | 1,721,382 | 1,484,391 | 958,605 | 852,269 | |
Operating Expenses: | (803,122) | (702,569) | (418,962) | (404,610) | |
Administrative Expenses | 9 | (111,902) | (102,846) | (60,733) | (59,739) |
Selling, Marketing and Distribution Expenses | 10 | (691,220) | (599,723) | (358,229) | (344,871) |
Profit from Operations | 918,260 | 781,822 | 539,643 | 447,659 | |
Other Income | 150,907 | 314,314 | 79,474 | 119,398 | |
Finance Cost | (266,391) | (210,173) | (134,648) | (117,571) | |
Preference Share Dividend | - | (153,750) | - | (51,250) | |
Profit Before Contribution to WPPF | 802,776 | 732,213 | 484,469 | 398,236 | |
Contribution to Workers' Profit Participation/Welfare Funds | (38,227) | (34,867) | (23,070) | (18,963) | |
Profit Before Tax | 764,549 | 697,346 | 461,399 | 379,273 | |
Income Tax Expenses | (193,306) | (169,073) | (142,806) | (68,962) | |
Profit After Tax | 571,243 | 528,273 | 318,593 | 310,311 | |
Other Comprehensive Income | - | - | - | - | |
Total Comprehensive Income | 571,243 | 528,273 | 318,593 | 310,311 | |
Earnings Per Share (EPS) | Tk. | 2.72 | 2.52 | 1.52 | 1.48 |
Number of Shares used to compute EPS (Note 11) | 209,806,509 | 209,806,509 | 209,806,509 | 209,806,509 |
BEXIMCO PHARMACEUTICALS LIMITED
Statement of Changes in Equity (Un-audited)
For the period ended June 30, 2011
Taka ' 000 | |||||||
Half Year ended June 30, 2010 | |||||||
Share Capital | Share Premium | Excess of Issue Price over Face Value of GDRs | Capital Reserve | Revaluation Surplus | Retained Earnings | Total | |
Balance as on January 01, 2010 | 1,511,493 | 1,489,750 | 1,689,637 | 294,951 | 1,617,362 | 4,282,514 | 10,885,707 |
Total Comprehensive Income | - | - | - | - | - | 528,273 | 528,273 |
Stock Dividend | 273,661 | - | (273,661) | - | |||
Preference Share Converted into Ordinary Shares | 312,911 | - | - | - | - | - | 312,911 |
Premium on Conversion of Preference Shares | - | 3,787,089 | - | 3,787,089 | |||
Adjustment for Depreciation on Revalued Assets | - | (13,405) | 13,405 | - | |||
As on June 30, 2010 | 2,098,065 | 5,276,839 | 1,689,637 | 294,951 | 1,603,957 | 4,550,531 | 15,513,980 |
Net Asset Value (NAV) per Share | Tk. 73.94 |
Taka ' 000 | |||||||
Half Year ended June 30, 2011 | |||||||
Share Capital | Share Premium | Excess of Issue Price over Face Value of GDRs | Capital Reserve | Revaluation Surplus | Retained Earnings | Total | |
Balance as on January 01, 2011 | 2,098,065 | 5,269,475 | 1,689,637 | 294,951 | 1,534,646 | 5,087,313 | 15,974,087 |
Total Comprehensive Income | - | - | - | - | - | 571,243 | 571,243 |
Adjustment for Depreciation on Revalued Assets | - | - | - | - | (11,780) | 11,780 | - |
Adjustment for Deferred Tax on Revalued Assets | - | - | - | - | (52,666) | - | (52,666) |
As on June 30, 2011 | 2,098,065 | 5,269,475 | 1,689,637 | 294,951 | 1,470,200 | 5,670,336 | 16,492,664 |
Net Asset Value (NAV) per Share | Tk. 78.61 |
BEXIMCO PHARMACEUTICALS LIMITED
Statement of Cash Flows (Un-audited)
For the Half-Year ended June 30, 2011
Taka ' 000 | ||
Half-Year ended | Half-Year ended | |
June 30, 2011 | June 30, 2010 | |
Cash Flows from Operating Activities : | ||
Cash Receipts from Customers and Others | 3,719,186 | 3,153,285 |
Cash Paid to Suppliers and Employees | (2,642,216) | (2,400,045) |
Cash Generated from Operations | 1,076,970 | 753,240 |
Interest Paid | (266,391) | (210,173) |
Income Tax Paid | (72,351) | (104,495) |
Net Cash Generated from Operating Activities | 738,228 | 438,572 |
Cash Flows from Investing Activities : | ||
Acquisition of Property, Plant and Equipment | (533,794) | (807,854) |
Intangible Assets | (33,981) | (13,963) |
Short Term Investment | (98,642) | 694,484 |
Net Cash Used in Investing Activities | (666,417) | (127,333) |
Cash Flows from Financing Activities : | ||
Net Increase / (Decrease) in Long Term Borrowings | (77,560) | 27,092 |
Net Increase / (Decrease) in Short Term Borrowings | 19,443 | 230,617 |
Preference Share Dividend | - | (153,750) |
Ordinary Share Dividend | (131) | (450) |
Net Cash Generated from Financing Activities | (58,248) | 103,509 |
Increase / (Decrease) in Cash and Cash Equivalents | 13,563 | 414,748 |
Cash and Cash Equivalents at Beginning of Period | 1,471,448 | 1,058,433 |
Cash and Cash Equivalents at End of Period | 1,485,011 | 1,473,181 |
Net Operating Cash Flow per Share Tk. | 3.52 | 2.09 |
BEXIMCO PHARMACEUTICALS LIMITED
Selected Notes to the Financial Statements (Un-audited)
For the Period ended June 30, 2011
1. Reporting Entity
Beximco Pharmaceuticals Limited (BPL/the Company) is a public company incorporated in Bangladesh in 1976. It commenced its manufacturing operation in 1980. The company is listed on Dhaka and Chittagong Stock Exchanges of Bangladesh and AIM of London Stock Exchange. The company is engaged in manufacturing and marketing of Pharmaceuticals Finished Formulation Products, Active Pharmaceutical Ingredients (APIs) and life saving Intravenous Fluids which it sells in the local as well as international markets.
2. Basis of Preparation of Financial Statements
These interim financial statements should be read in conjunction with the Financial Statements for the year ended December 31, 2010 (hereafter referred to as the "Annual Financial Statements"), as they provide an update to previously reported information.
The accounting policies used are consistent with those used in the Annual Financial Statements. The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where necessary, the comparatives have been reclassified or extended to take into account any presentational changes made in the Annual Financial Statements. The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.
Taka ' 000 | ||
As at June 30, 2011 | As at December 31, 2010 | |
3. Property, Plant and Equipment | ||
Cost / Revaluation | ||
Land | 3,277,506 | 3,277,506 |
Building and Other Constructions | 5,532,327 | 5,532,327 |
Plant & Machinery | 6,054,454 | 5,982,435 |
Furniture & Fixture | 123,114 | 114,007 |
Transport & Vehicle | 325,387 | 310,840 |
Office Equipment | 308,386 | 297,161 |
15,621,174 | 15,514,276 | |
Less : Accumulated Depreciation | (3,315,901) | (3,068,650) |
Written Down Value | 12,305,273 | 12,445,626 |
Capital Work in Progress | 3,104,576 | 2,677,680 |
Carrying Value | 15,409,849 | 15,123,306 |
Taka ' 000 | |||
As at June 30, 2011 | As at December 31, 2010 | ||
4. Inventories
Finished Goods |
654,324 |
565,050 |
|
Raw and Packing Material (Including Work in Process and Transit) | 1,412,688 | 1,373,442 |
|
Sample & Others | 47,594 | 45,317 |
|
2,114,606 | 1,983,809 |
| |
5. Loans, Advances and Deposits
Taka ' 000 | ||
As at June 30, 2011 | As at December 31, 2010 | |
Clearing & Forwarding | 36,372 | 23,017 |
VAT | 183,702 | 209,986 |
Security Deposit & Earnest Money | 26,128 | 29,060 |
Capital Expenditure/ Project | 12,843 | 14,893 |
Expenses | 57,656 | 35,509 |
Advance against Salary | 51,343 | 49,634 |
Motor Cycle | 126,174 | 139,476 |
Raw & Packing Materials | 210,299 | 161,055 |
Advance Income Tax | - | 37,736 |
Others | 104,105 | 78,764 |
808,622 | 779,130 | |
6. Cash and Cash Equivalents
Taka ' 000 | ||
As at June 30, 2011 | As at December 31, 2010 | |
Cash in Hand, Current & FC Account | 31,553 | 59,991 |
Imprest Cash | 1,789 | 1,789 |
FDR Account | 1,451,669 | 1,409,668 |
1,485,011 | 1,471,448 | |
7. Long Term Borrowings:
Taka ' 000 | ||
As at June 30, 2011 | As at December 31, 2010 | |
A. Net off Current Maturity (Secured) | ||
Project Loan | 1,712,871 | 1,733,509 |
Interest and PAD Block | 22,459 | 41,526 |
Obligation under Finance Lease | 108,830 | 127,116 |
1,844,160 | 1,902,151 | |
B. Current Maturity | ||
Project Loan | 250,000 | 250,000 |
Interest and PAD Block | 30,000 | 47,391 |
Obligation under Finance Lease | 49,291 | 51,469 |
329,291 | 348,860 | |
Taka ' 000 | ||
Half Year ended | Half Year ended | |
June 30, 2011 | June 30, 2010 | |
8. Cost of Goods Sold Materials |
1,416,854 |
1,094,559 |
Factory Overhead | 280,294 | 225,518 |
Depreciation | 223,763 | 164,186 |
1,920,911 | 1,484,263 |
9. Administrative Expenses
Taka ' 000 | ||
Half Year ended | Half Year ended | |
June 30, 2011 | June 30, 2010 | |
Salary & Allowances | 55,929 | 50,088 |
Fuel, Repairs & Office Maintenance | 7,368 | 7,056 |
Travelling & Conveyance | 7,323 | 6,636 |
AGM, Company Secretarial Expenses and Regulatory Fees | 16,147 | 15,176 |
Depreciation | 8,654 | 8,952 |
Other Expenses | 16,481 | 14,938 |
111,902 | 102,846 |
10. Selling, Marketing and Distribution Expenses
Taka ' 000 | ||
Half Year ended | Half Year ended | |
June 30, 2011 | June 30, 2010 | |
Salary & Allowances | 208,364 | 177,994 |
Travelling & Conveyance | 99,729 | 85,950 |
Market Research & New Products | 11,962 | 10,542 |
Sample, Literature & Promotional Expenses | 204,802 | 185,711 |
Delivery Expense | 98,341 | 78,194 |
Depreciation | 14,834 | 15,666 |
Other Expenses | 53,188 | 45,666 |
691,220 | 599,723 |
11. Dividend for 2010
The Shareholders of the company has approved 20% stock dividend for the year 2010 in the annual general meeting held on July 02, 2011. The company consistently follows the policy of recognising proposed dividend after its approval by the shareholders in the annual general meeting. Hence, the proposed dividend for 2010 has not been accounted for in the interim financial statements. Additional shares to be issued consequent to the approval of the Stock Dividend has also not been considered in calculating the EPS.
Related Shares:
Beximco Pharma