30th Jul 2010 07:00
BEXIMCO PHARMACEUTICALS LTD.
30th July, 2010
Half Year Results - 2010
Beximco Pharmaceuticals Limited ("BPL" or "Company"; AIM Symbol: BXP) today announces its results for the half year to 30 June 2010.
Highlights
Half year financial highlights
·; Net sales increased by 28% to Bangladesh Taka ("BDT") 2,968.7m / £27.3m (2009: BDT 2,314.7m / £21.3m)
o Domestic sales increased 28% to BDT 2,825.9m / £26.0m (H1 2009: BDT 2,207.9m / £20.3m)
o Export sales increased 33.6% to BDT 142.7m / £1.3m (H1 2009: BDT 106.8m / £0.98m)
·; Profit before tax increased by 83% to BDT 697.3m / £6.4m (H1 2009: BDT 381.5m / £3.5m)
·; EPS increased by 22% to BDT 2.52 / 2.3 pence (2009: BDT 2.06 / 1.9 pence)
·; 41,000,000 fully convertible, six-month 5% Preference Shares of BDT 100 (£0.92) each converted. The first conversion, representing 50% of the total amount, occurred in February 2010 at a conversion price of BDT 126.66 / £1.17 and the remainder were converted in May 2010 at a conversion price of BDT 135.59 / £1.25
Second quarter 2010 highlights
·; Net sales increased by 34% to BDT 1,642.0m / £15.1m (2009: BDT 1,225.9m / £11.3m)
·; Profit before tax increased by 65% to BDT 379.3m / £3.5m (2009: BDT 230.2m / £2.1m)
Operational highlights
·; 35 new products registered in overseas markets
·; 5 new markets entered: The Netherlands Antilles, El Salvador, Benin, Sudan and Tonga (Pacific Islands)
·; 11 generics in a total of 28 products launched including 7 Ophthalmics, 4 injectables and 3 HFA-based inhalers
o HFA inhalers and Napa Extend (a formulation of Paracetamol 665 mg) launched for the first time in Bangladesh
·; Remaining three lines of the new Oral Solid Dosage (OSD) facility are being commissioned
·; New Metered Dose Inhaler (MDI) facility is nearing completion
·; Other projects including Amino Acid (AA) and ION (Injectable, Ophthalmic and Nebulizer) expansion are nearing completion
·; The Company received the prestigious Bangladeshi Superbrands Award for 2010-11
Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:
"We strongly believe that we have significant scope to grow both in domestic and overseas markets, and our investments in expanding capacity and upgrading our facilities will provide the necessary impetus for long-term sustainable growth. Our new OSD facility will have increased capacity, with an additional three production lines commissioned, and the construction of our new MDI facility is nearing completion which will further expand capacity, enabling us to cater to growing demand.
"As we seek to deliver our ambitious long-term growth targets, we have delivered excellent results during the first half of 2010, achieving impressive sales growth in both domestic and export markets.
"We remain increasingly focused on expanding in international markets. As we increase our manufacturing capacity, we continue to successfully register products in all our existing export markets.
"As competitiveness and global standards are prerequisite for success, we have taken steps to reduce costs and optimize resources to remain competitive in the marketplace. We have also renewed our focus on R&D and Regulatory Affairs in order to achieve excellence in these areas and to capitalize on the opportunities in global generics."
The half yearly accounts can be viewed at the Company's website: www.beximcopharma.com
(An exchange rate of £ 1 = Taka 108.55 has been used in this announcement.)
For further enquiries please contact:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 861 9151, ext.2080
Libertas Capital Corporate Finance
Jakob Kinde / Anthony Rowland 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.
END
BEXIMCO PHARMACEUTICALS LTD.
Statement of the Managing Director
Dear Shareholders,
We are pleased to announce the un-audited financial results for the half year ended 30th June 2010.
The company performed strongly during the first half of the year and achieved net domestic sales of BDT 2,825.9m (£26.0m) with impressive 28% growth over the corresponding period of 2009. This performance was largely driven by strong growth of key brands, as well as the excellent response to our 28 new products launched during the period.
Export turnover was BDT 142.7m (£1.3m) which is 33.6 % higher on comparable basis. During the first half, the company entered into 5 new markets and registered 35 products overseas.
The company earned a pre-tax profit of BDT 697.3m (£6.4m) with EPS of BDT 2.52 (2.3 pence) (diluted) against BDT 381.5m (£3.5m) and BDT 2.06 (1.9 pence) respectively, in the previous year.
BPL continues to invest in expanding capacities to capitalize on the opportunities in global generic markets. The remaining three lines of our new Oral Solid Dosage (OSD) facility are being commissioned and the new MDI facility is also nearing completion. The progress of additional expansion projects are also on track.
We are pleased with the progress achieved in the first half of 2010 and our achievement during the period reinforces our focus on different strategic priorities which will enable us to deliver a broader range of medicines to our patients and greater value to shareholders.
Nazmul Hassan
Managing Director
BEXIMCO PHARMACEUTICALS LTD.
Balance Sheet (Unaudited)
As at June 30, 2010
|
|
|
|
|
Taka '000
|
|
|
Notes |
As at June 30, 2010 |
|
As at Dec 31, 2009 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Non-Current Assets |
|
13,608,207 |
|
12,975,195 |
|
Property, Plant and Equipment- Carrying Value |
3 |
13,585,636 |
|
12,966,587 |
|
Intangible Assets |
|
19,689 |
|
5,726 |
|
Investment in Shares |
|
2,882 |
|
2,882 |
|
|
|
|
|
|
|
Current Assets |
|
7,127,497 |
|
6,916,738 |
|
Inventories |
4 |
1,908,778 |
|
1,722,953 |
|
Spares & Supplies |
|
271,386 |
|
242,035 |
|
Accounts Receivable |
|
823,794 |
|
694,112 |
|
Loans, Advances and Deposits |
5 |
844,842 |
|
699,204 |
|
Short Term Investment |
|
1,805,516 |
|
2,500,000 |
|
Cash and Cash Equivalents |
6 |
1,473,181 |
|
1,058,434 |
|
|
|
|
|
|
|
TOTAL ASSETS |
Tk. |
20,735,704 |
|
19,891,933 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY AND LIABILITIES |
|
|
|
|
|
Shareholders' Equity |
|
15,513,980 |
|
10,885,707 |
|
Issued Share Capital |
|
2,098,065 |
|
1,511,493 |
|
Share Premium |
|
5,276,839 |
|
1,489,750 |
|
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 |
|
1,603,957 |
|
1,617,362 |
|
Retained Earnings |
|
4,550,531 |
|
4,282,514 |
|
|
|
|
|
|
|
Non-Current Liabilities |
|
2,672,844 |
|
6,684,775 |
|
Long Term Borrowing-Net of Current Maturity (Secured) |
7 A |
1,925,172 |
|
1,924,933 |
|
Fully Convertible, 5% Dividend, Preference Share |
|
- |
|
4,100,000 |
|
Liability for Gratuity & WPPF |
|
305,784 |
|
307,426 |
|
Deferred Tax Liability |
|
441,888 |
|
352,416 |
|
|
|
|
|
|
|
Current Liabilities and Provisions |
|
2,548,881 |
|
2,321,451 |
|
Short Term Borrowing |
|
1,681,943 |
|
1,451,326 |
|
Long Term Borrowing-Current Maturity |
7 B |
335,672 |
|
308,820 |
|
Creditors and other Payables |
|
365,685 |
|
409,898 |
|
Accrued Expenses |
|
118,614 |
|
79,095 |
|
Dividend Payable |
|
1,278 |
|
1,728 |
|
Income Tax Payable |
|
45,690 |
|
70,584 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
Tk. |
20,735,704 |
|
19,891,933 |
BEXIMCO PHARMACEUTICALS LTD.
Profit and Loss Account (Unaudited)
For the Half-year ended June 30, 2010
|
|
|
|
|
|
|
|
|
Taka '000
|
|
|
Notes |
Half-Year ended June 30, 2010 |
|
Half-Year ended June 30, 2009 |
|
2nd Quarter (April-June) 2010 |
|
2nd Quarter (April-June) 2009 |
|
|
|
|
|
|
|
|
|
|
|
Net Sales Revenue |
|
2,968,654 |
|
2,314,712 |
|
1,642,053 |
|
1,225,907 |
|
Cost of Goods Sold |
8 |
(1,484,263) |
|
(1,228,278) |
|
(789,784) |
|
(659,792) |
|
Gross Profit |
|
1,484,391 |
|
1,086,434 |
|
852,269 |
|
566,115 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
(702,569) |
|
(660,348) |
|
(404,610) |
|
(361,304) |
|
Administrative Expenses |
9 |
(102,846) |
|
(97,949) |
|
(59,739) |
|
(50,113) |
|
Selling and Distribution Expenses |
10 |
(599,723) |
|
(562,399) |
|
(344,871) |
|
(311,191) |
|
|
|
|
|
|
|
|
|
|
|
Profit from Operations |
|
781,822 |
|
426,086 |
|
447,659 |
|
204,811 |
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
314,314 |
|
113,392 |
|
119,398 |
|
108,342 |
|
Finance Cost |
|
(210,173) |
|
(138,888) |
|
(117,571) |
|
(71,441) |
|
Preference Share Dividend |
|
(153,750) |
|
- |
|
(51,250) |
|
- |
|
Profit before Contribution to WPPF |
|
732,213 |
|
400,590 |
|
398,236 |
|
241,712 |
|
|
|
|
|
|
|
|
|
|
|
Contribution to Workers' |
|
|
|
|
|
|
|
|
|
Profit Participation/ Welfare Funds |
|
(34,867) |
|
(19,076) |
|
(18,963) |
|
(11,510) |
|
|
|
|
|
|
|
|
|
|
|
Profit before Tax |
|
697,346 |
|
381,514 |
|
379,273 |
|
230,202 |
|
Income Tax |
|
(169,073) |
|
(70,490) |
|
(68,962) |
|
(43,254) |
|
Profit after Tax |
|
528,273 |
|
311,024 |
|
310,311 |
|
186,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share (EPS) |
|
2.52 |
|
2.06 |
|
1.48 |
|
1.24 |
|
Number of shares used to compute EPS |
|
209,806,509 |
|
151,149,296 |
|
209,806,509 |
|
151,149,296 |
BEXIMCO PHARMACEUTICALS LTD.
Statement of Changes in Equity (Unaudited)
For the period ended June 30, 2010
|
|
|
|
|
|
|
|
Taka '000 |
|
Half-Year ended June 30, 2009 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
Share Capital |
Share Premium |
Excess of Issue Price over Face Value of GDRs |
Capital Reserve |
Revaluation Surplus |
Retained Earnings |
Total |
|
Opening Balance on 01.01.2009 |
1,259,577 |
1,489,750 |
1,689,637 |
294,951 |
1,711,175 |
4,005,112 |
10,450,202 |
|
Net Profit for the Period |
- |
- |
- |
- |
- |
311,024 |
311,024 |
|
Cash Dividend of Previous year (2008) |
- |
- |
- |
- |
- |
(125,958) |
(125,958) |
|
Bonus Share |
251,916 |
- |
- |
- |
- |
(251,916) |
- |
|
At the end of June 2009 Tk. |
1,511,493 |
1,489,750 |
1,689,637 |
294,951 |
1,711,175 |
3,938,262 |
10,635,268 |
|
|
|
|
|
|
|
|
|
|
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 |
|
Opening Balance on 01.01.2010 |
1,511,493 |
1,489,750 |
1,689,637 |
294,951 |
1,617,362 |
4,282,514 |
10,885,707 |
|
Net Profit for the Period |
- |
- |
- |
- |
- |
528,273 |
528,273 |
|
Preference Share Converted into Ordinary Share |
312,911 |
- |
- |
- |
- |
- |
312,911 |
|
Premium on Convertion of Preference Share |
- |
3,787,089 |
- |
- |
- |
- |
3,787,089 |
|
Bonus Share |
273,661 |
- |
- |
- |
- |
(273,661) |
- |
|
Adjustment for Depreciation on Revalued Assets |
- |
- |
- |
- |
(13,405) |
13,405 |
- |
|
At the end of June 2010 Tk. |
2,098,065 |
5,276,839 |
1,689,637 |
294,951 |
1,603,957 |
4,550,531 |
15,513,980 |
BEXIMCO PHARMACEUTICALS LTD.
Cash Flow Statement (Unaudited)
For the Half-year ended June 30, 2010
|
|
|
|
|
Taka '000
|
|
|
Notes |
Half-Year ended June 30, 2010 |
|
Half-Year ended June 30, 2009 |
|
|
|
|
|
|
|
Cash Flows from Operating Activities : |
|
|
|
|
|
|
|
|
|
|
|
Cash Receipts from Customers and Others |
|
3,153,285 |
|
2,167,530 |
|
Cash Paid to Suppliers and Employees |
|
(2,400,045) |
|
(1,969,896) |
|
Cash Generated from Operations |
|
753,240 |
|
197,634 |
|
|
|
|
|
|
|
Interest Paid |
|
(210,173) |
|
(138,888) |
|
Income Tax Paid |
|
(104,495) |
|
(33,160) |
|
Net cash Generated from Operating Activities |
|
438,572 |
|
25,586 |
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of Property, Plant and Equipment (net of IDCP) |
|
(807,854) |
|
(236,890) |
|
Sale of Shares |
|
- |
|
124,000 |
|
Intangible Assets |
|
(13,963) |
|
|
|
Short Term Investment |
|
694,484 |
|
- |
|
Disposal of Property, Plant and Equipment |
|
- |
|
62 |
|
Net Cash used in Investing Activities |
|
(127,333) |
|
(112,828) |
|
|
|
|
|
|
|
Cash Flows from Financing Activities : |
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease)/Increase in Long Term Borrowings |
|
27,092 |
|
(90,623) |
|
Net (Decrease) /Increase in Short Term Borrowings |
|
230,617 |
|
167,104 |
|
Preference Share Dividend |
|
(153,750) |
|
- |
|
Ordinary Share Dividend |
|
(450) |
|
(1,198) |
|
Net Cash Generated from Financing Activities |
|
103,509 |
|
75,283 |
|
Increase/(Decrease) in Cash and Cash Equivalents |
|
414,748 |
|
(11,959) |
|
Cash and Cash Equivalents at Beginning of Period |
|
1,058,433 |
|
73,648 |
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Period |
Tk. |
1,473,181 |
|
61,689 |
BEXIMCO PHARMACEUTICALS LTD.
Selected Notes to the Financial Statements (Unaudited)
For the Period ended June 30, 2010
1 Status and Activities
Beximco Pharmaceuticals Limited (BPL/the Company) is a Public Limited Company incorporated in Bangladesh in 1976. The company is listed with 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 and life saving intravenous Fluids which it sells in the local as well as international markets.
2 Principal Accounting Policies
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, 2009 (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) including International Accounting Standards (IASs). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where necessary, the comparatives have been reclassified or extended from the Half Yearly Report of 2009 to take into account any presentational changes made in the Annual Financial Statements or in the Half Yearly Report 2010. 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, 2010 |
|
As at Dec 31, 2009 |
|
3 Property, Plant and Equipment |
|
|
|
|
|
|
|
|
|
|
|
Cost / Revaluation |
|
|
|
|
|
Land |
|
3,277,506 |
|
3,277,506 |
|
Building and Other Constructions |
|
5,509,496 |
|
5,504,513 |
|
Plant & Machinery |
|
5,735,159 |
|
4,960,206 |
|
Furniture & Fixture |
|
105,937 |
|
101,631 |
|
Transport & Vehicle |
|
203,176 |
|
150,535 |
|
Office & Lab Equipment |
|
355,915 |
|
278,030 |
|
|
|
15,187,189 |
|
14,272,421 |
|
Less : Accumulated Depreciation |
|
(2,843,584) |
|
(2,654,779) |
|
Written Down Value |
|
12,343,605 |
|
11,617,642 |
|
Capital Work in Progress |
|
1,242,031 |
|
1,348,945 |
|
|
|
|
|
|
|
Carrying Value |
Tk. |
13,585,636 |
|
12,966,587 |
|
|
|
|
|
Taka '000
|
|
|
|
As at June 30, 2010 |
|
As at Dec 31, 2009 |
|
4 Inventories |
|
|
|
|
|
Finished Goods |
|
469,538 |
|
554,393 |
|
Materials |
|
|
|
|
|
(Including Work in Process and Transit) |
|
1,400,434 |
|
1,141,666 |
|
Sample & Others |
|
38,806 |
|
26,894 |
|
|
Tk. |
1,908,778 |
|
1,722,953 |
|
|
|
|
|
|
|
5 Loans, Advances and Deposits |
|
|
|
|
|
Motor Cycle Loan |
|
123,205 |
|
124,549 |
|
Security and Other Deposits |
|
39,435 |
|
34,832 |
|
Prepaid VAT |
|
196,741 |
|
193,432 |
|
Advance for Capital Expenditure |
|
95,043 |
|
65,305 |
|
Advance for Expense |
|
62,202 |
|
29,695 |
|
Salary Advance |
|
63,711 |
|
58,797 |
|
Advance to Suppliers including C & F Agents |
|
234,054 |
|
175,489 |
|
Others |
|
30,451 |
|
17,105 |
|
|
Tk. |
844,842 |
|
699,204 |
|
|
|
|
|
|
|
6 Cash and Cash Equivalents |
|
|
|
|
|
Cash in Hand , Transit & Bank |
|
72,090 |
|
57,342 |
|
Imprest Cash |
|
1,091 |
|
1,091 |
|
FDR |
|
1,400,000 |
|
1,000,000 |
|
|
Tk. |
1,473,181 |
|
1,058,433 |
|
|
|
|
|
|
|
7 Long Term Borrowing |
|
|
|
|
|
|
|
|
|
|
|
A Non Current Maturity |
|
|
|
|
|
Project Loan |
|
1,697,391 |
|
1,723,033 |
|
Interest and PAD Block |
|
61,189 |
|
81,384 |
|
Obligation under Finance Lease |
|
166,592 |
|
120,516 |
|
|
Tk. |
1,925,172 |
|
1,924,933 |
|
|
|
|
|
|
|
B Current Maturity |
|
|
|
|
|
Project Loan |
|
250,000 |
|
187,500 |
|
Interest and PAD Block |
|
47,700 |
|
77,899 |
|
Obligation under Finance Lease |
|
37,972 |
|
43,421 |
|
|
Tk. |
335,672 |
|
308,820 |
|
|
|
|
|
Taka '000
|
|
|
|
Half-Year ended June 30, 2010 |
|
Half-Year ended June 30, 2009 |
|
|
|
|
|
|
|
8 Cost of Goods Sold |
|
|
|
|
|
Materials |
|
1,094,559 |
|
946,153 |
|
Factory Overhead |
|
225,518 |
|
176,183 |
|
Depreciation |
|
164,186 |
|
105,942 |
|
|
Tk. |
1,484,263 |
|
1,228,278 |
|
|
|
|
|
|
|
9 Administrative Expenses |
|
|
|
|
|
Salary & Allowances |
|
50,088 |
|
48,711 |
|
Fuel, Repairs & Office Maintenance |
|
7,056 |
|
6,670 |
|
Travelling & Conveyance |
|
6,636 |
|
3,546 |
|
AGM and Company Secretarial Expenses |
|
15,176 |
|
17,927 |
|
Other Expenses |
|
14,938 |
|
16,334 |
|
Depreciation |
|
8,952 |
|
4,761 |
|
|
Tk. |
102,846 |
|
97,949 |
|
|
|
|
|
|
|
10 Selling and Distribution Expenses |
|
|
|
|
|
Salary & Allowances |
|
177,994 |
|
164,630 |
|
Travelling & Conveyance |
|
85,950 |
|
84,976 |
|
Market Research & New Products |
|
10,542 |
|
9,066 |
|
Sample, Literature & Promotional Expenses |
|
185,711 |
|
177,060 |
|
Delivery Commission |
|
78,194 |
|
63,391 |
|
Depreciation |
|
15,666 |
|
8,333 |
|
Other Expenses |
|
45,666 |
|
54,943 |
|
|
Tk. |
599,723 |
|
562,399 |
11 Dividend for 2009
The Board of Directors of the company approved 15% stock dividend for the year 2009 in the Annual General Meeting held on June 15, 2010. The company consistently follows the policy of recognising proposed dividend after its approval by the shareholders.
Related Shares:
Beximco Pharma