Square, Beximco, Renata, Beacon, Acme and IBN Sina reported higher revenue and profits, while ACI swung to a loss and smaller firms struggled amid rising operating costs.
Representational Photo: Collected
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Representational Photo: Collected
The country’s leading pharmaceutical companies managed to sustain revenue and profit growth in the July-September quarter of FY27 despite disruptions in gas and electricity supplies and rising fuel costs, although their expansion slowed to mostly single-digit rates.
Among the listed drug makers that disclosed quarterly results, Square Pharmaceuticals, Beximco Pharmaceuticals, Renata, Beacon Pharmaceuticals, Acme Laboratories and IBN Sina Pharmaceuticals reported increases in both revenue and profit. However, ACI and Silva Pharmaceuticals incurred losses, while Advent and Navana Pharmaceuticals saw their profits decline.
Square Pharma remained the largest listed drug maker by revenue and profit, reporting consolidated revenue of Tk2,244 crore, up 4% year-on-year, and net profit of Tk777 crore, a 5% increase. Beximco Pharma posted revenue of Tk1,466 crore, up 6%, while its profit rose 8% to Tk260 crore.
Renata recorded 11% revenue growth to Tk1,260 crore, while its profit jumped 38% to Tk102 crore. The company attributed the improvement mainly to higher revenue and lower net finance expenses, reflecting the impact of capital restructuring and prudent management of foreign exchange and interest rate risks.
Beacon Pharma delivered the fastest revenue growth among the major players, with turnover rising 13% to Tk463 crore. Its profit increased 50% to Tk78 crore. Acme Laboratories reported 11% revenue growth to Tk1,101 crore and a 13% rise in profit to Tk72 crore. IBN Sina’s revenue and profit grew 7% and 9% to Tk398 crore and Tk24 crore, respectively.
Beximco Pharma Managing Director SM Rabbur Reza, in a statement to the London Stock Exchange, where the company’s global depository receipts are listed, said the results demonstrated the underlying strength and resilience of its business despite ongoing macroeconomic challenges.
He said the company had continued to deliver revenue and profitability growth while pursuing its strategy of supplying affordable medicines at home and abroad.
A senior researcher at an asset management company said the sector had faced significant pressure from gas and electricity shortages, while higher fuel prices had added to inflation and operating costs.
Even the leading companies, which traditionally delivered double-digit growth, have reported mostly single-digit expansion in revenue and profit this time, he said. However, the pharmaceutical sector has performed relatively well compared with many other industries amid the severe external shocks. Smaller and weaker companies have been more exposed to the pressure.
The results show a widening gap between companies with stronger operating capacity and those struggling to absorb higher costs. ACI reported consolidated revenue growth of 12% to Tk4,149 crore, but swung to a loss of Tk18.84 crore from a profit of Tk3.40 crore a year earlier, mainly due to higher finance costs against debt. Its consolidated revenue includes businesses beyond pharmaceuticals, such as consumer products, motor, retail, fertiliser and pesticides.
Navana Pharma’s profit fell 7% to Tk17.14 crore despite 6% revenue growth, while Advent Pharma’s earnings dropped 60% to Tk0.56 crore. Silva Pharma’s loss narrowed slightly to Tk3.43 crore, although its revenue declined 17% to Tk7.20 crore.
Of the 17 pharmaceutical companies listed on the stock exchanges, 10 disclosed quarterly results. The sector’s market capitalisation stood at Tk40,995 crore, accounting for 6.11% of the Dhaka Stock Exchange’s total market value.
For investors navigating the current market climate, analysts suggest adopting a defensive strategy focused on top-tier pharmaceutical stocks with strong balance sheets, robust export capabilities, and proven resilience against energy and currency fluctuations. While short-term utility shocks and financing costs have temporarily compressed margins for vulnerable operators, blue-chip drug makers continue to offer stable long-term fundamentals and reliable demand, making them favourable holdings for conservative portfolios weathering macroeconomic transitions.
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