BEXIMCO PHARMACEUTICALS LIMITED 
By RNS Number : 3236L Beximco Pharmaceuticals Ltd
29 July 2011
BEXIMCO PHARMACEUTICALS LTD.29th July, 2011
Half Year Results - 2011Beximco Pharmaceuticals Limited ("BPL" or "Company"; AIM Symbol: BXP) today announces its results for the half year to 30 June 2011.
HighlightsHalf 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 7169Notes to EditorsAbout Beximco Pharmaceuticals LimitedFounded 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 LIMITEDStatement 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 DirectorBEXIMCO PHARMACEUTICALS LIMITED Statement of Financial Position (Un-audited) As at June 30, 2011ASSETSNotes As atJune 30,2011Taka ' 000
As aDecember 31,2010Non-Current Assets 15,501,256 15,180,732Property, Plant and Equipment- Carrying Value 3 15,409,849 15,123,306
Intangible Assets 85,108 51,127 Investment in Shares 6,299 6,299Current Assets 6,565,112 6,191,667Inventories 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 1,471,448TOTAL ASSETS 22,066,368 21,372,399EQUITY AND LIABILITIESShareholders' Equity 16,492,664 15,974,087Issued 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 5,087,313Non-Current Liabilities 3,035,646 2,885,156Long 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 764,546 647,119Current Liabilities and Provisions 2,538,058 2,513,156Short 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 21,372,399BEXIMCO PHARMACEUTICALS LIMITED Statement of Comprehensive Income (Un-audited) For the Half Year Ended June 30, 2011Notes Half-Year ended June 30,2011Half-Year ended June 30,20102nd Quarter(April - June)2011Taka ' 000
2nd Quarter(April - June)2010Net Sales Revenue 3,642,293 2,968,654 1,970,552 1,642,053Cost of Goods Sold 8 (1,920,911) (1,484,263) (1,011,947) (789,784)
Gross Profit 1,721,382 1,484,391 958,605 852,269Operating 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 571,243 528,273 318,593 310,311Other Comprehensive Income - - - -
Total Comprehensive Income 571,243 528,273 318,593 310,311Earnings Per Share (EPS) Tk. 2.72 2.52 1.52 1.48
Number of Shares used to compute EPS (Note 11) 209,806,509 209,806,509 209,806,509 209,806,509BEXIMCO PHARMACEUTICALS LIMITED Statement of Changes in Equity (Un-audited) For the period ended June 30, 2011Net Asset Value (NAV) per Share Tk. 73.94Net Asset Value (NAV) per Share Tk. 78.61BEXIMCO PHARMACEUTICALS LIMITEDStatement of Cash Flows (Un-audited) For the Half-Year ended June 30, 2011
Cash Flows from Operating Activities :Taka ' 000
Half-Year ended Half-Year endedJune 30, 2011 June 30, 2010Cash 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 1,076,970 753,240Interest 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) 103,509Increase / (Decrease) in Cash and Cash Equivalents 13,563 414,748Cash and Cash Equivalents at Beginning of Period 1,471,448 1,058,433
Cash and Cash Equivalents at End of Period 1,485,011 1,473,181Net Operating Cash Flow per Share Tk. 3.52 2.09BEXIMCO PHARMACEUTICALS LIMITED Selected Notes to the Financial Statements (Un-audited) For the Period ended June 30, 20111. Reporting EntityBeximco 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 StatementsThese 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.3. Property, Plant and EquipmentAs atJune 30,2011Taka ' 000
As atDecember 31,2010Cost / RevaluationLand 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 15,123,3064. InventoriesAs atJune 30,2011Taka ' 000
As atDecember 31,2010Finished 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 45,3172,114,606 1,983,8095. Loans, Advances and DepositsAs atJune 30,2011Taka ' 000
As atDecember 31,2010Clearing & 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 78,764 808,622 779,1306. Cash and Cash EquivalentsAs atJune 30,2011Taka ' 000
As atDecember 31,2010Cash 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 1,471,4487. Long Term Borrowings:A. Net off Current Maturity (Secured)As atJune 30,2011Taka ' 000
As atDecember 31,2010Project 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 1,902,151B. Current MaturityProject Loan 250,000 250,000
Interest and PAD Block 30,000 47,391 Obligation under Finance Lease 49,291 51,469 329,291 348,8608. Cost of Goods Sold
Taka ' 000Half Year ended Half Year endedJune 30, 2011 June 30, 2010Materials 1,416,854 1,094,559
Factory Overhead 280,294 225,518 Depreciation 223,763 164,186 1,920,911 1,484,2639. Administrative ExpensesTaka ' 000
Half Year ended Half Year endedJune 30, 2011 June 30, 2010Salary & 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 14,938 111,902 102,84610. Selling, Marketing and Distribution ExpensesTaka ' 000
Half Year ended Half Year endedJune 30, 2011 June 30, 2010Salary & 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 45,666 691,220 599,72311. Dividend for 2010The 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
