Square Pharmaceuticals has attained an average growth rate of 20 per cent in the past five years, beating the national average growth rate, riding on the expanded domestic market as well as new export frontiers.
The other highlights including gross margin, net margin, earnings per share also continued to show positive trend, according to the company's latest annual report.
The company has already entered into the global arena with approval of UK, EU and US governments for marketing its products there as well as approval of investment by Bangladesh government for setting up a subsidiary company in Kenya.
"As the country is now on the high-way of economic growth targeting to reach the middle-income group by 2021 and higher income group by 2041, the prospect growth is at a high rate as over the past, in becoming more and more certain," said Samuel S. Chowdhury, chairman of Square Pharmaceuticals, in the latest annual report.
Square Pharmaceuticals, the flagship company of Square Group, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player.
Square Pharma's total sales stood at Tk 33.30 billion in the fiscal year 2016-2017 as against Tk 33.61 billion, posting a 0.95 per cent decline.
The company has registered consolidated revenues from operations of Tk 42.28 billion for the year ended on June 30, 2017 as against Tk 38.32 billion in the previous year, an increase of 10.33 per cent.
Square Pharma has made net profit of Tk 7.79 billion for the year ended on June 30, 2017 compared to Tk 7.51 billion for the previous. Earnings per share (EPS) stood at Tk 11.36 as against Tk 10.95.
The company's consolidated net profit of Tk 10.98 billion for the year ended on June 30, 2017 as against Tk 9.20 billion for the previous. Consolidated earnings per share stood at Tk 15.51 in 2017 as against Tk 13.41 in the previous year.
"Despite the marginal fall in its turnover, gross profit, net profit and earnings per share all indicate increasing trend," said Tapan Chowdhury, managing director of Square Pharmaceuticals.
He explained that while overhead cost had increased by only 8.02 per cent, the cost of fuel & power had increased by 18.4 per cent which had mainly depressed the gross profit and consequently the net profit too.
Mr. Tapan Chowdhury noted that as the government is considering further increase in price of gas, fuel and power a threat of lower profit in future seems to lie ahead.
The company has given a further trust for increasing the export volume within the current capacity. During the year 2016-2017, the exports amounted to Tk 1.38 billion as against Tk 1.13 billion in the previous year, a 23 per cent increase. The export is expected to increase in coming years. Presently, the company is exporting its medicine to 42 countries.
Each share of the Square Pharma closed at Tk 300.10 on Wednesday on the Dhaka Stock Exchange (DSE).
Square Pharmaceuticals, which was listed on the Dhaka bourse in 1995, disbursed 35 per cent cash and 7.5 per cent stock dividend for the year ended on June 30, 2017.
The company's paid-up capital is 7.37 billion, authorised capital is Tk 10 billion and the total number of securities is 737.39 million. The second largest market cap company's total market cap stood at Tk 223 billion as of Wednesday.
Sponsor-directors own 34.43 per cent stake in the company while institutional investors 10.13 per cent, foreign investors 20 per cent and general public 35.44 per cent as on March 31, 2018.
Meanwhile, the company's nine months consolidated earnings per share (EPS) stood at Tk 11.99 for July 2017-March 2018 as against Tk 10.59 for July 2016-March 2017.
The consolidated net operating cash flow per share (NOCFPS) was Tk 11.26 for July 2017-March 2018 as against Tk 11.49 for July 2016-March 2017.
The consolidated net asset value (NAV) per share was Tk 74.75 as on March 31, 2018 and Tk. 66.49 as on June 30, 2017.
Presently, the pharmaceuticals industry of Bangladesh meets about 98 per cent of the local demand and exports to more than 125 countries.
Bangladesh's pharmaceutical industry is dominated by local players. Square Pharmaceuticals leads the charge, grabbing 21.45 per cent market share for the year 2016.17.
