Square Pharma posts 10.13 pc growth in export

http://nation.ittefaq.com/issues/2008/10/08/news0125.htm

Square Pharma posts 10.13 pc growth in export

BUSINESS REPORT

The country’s largest drug manufacturer Square Pharmaceuticals Ltd has posted 10.13 percent growth in its annual export during the year that ended on March 31, 2008.

The company’s export sales, which amounted to Tk 192.95 million in the previous year, has gone up by almost Tk 20 million to stand at Tk 212.49 million in 2008, its annual report for 2007-2008 said.

At the same time, the conglomerate’s net turnover has increased by 10.09 percent to Tk. 8.26 billion. The net profit, which grew 8.46 percent, stood at Tk. 1.87 billion.

However, the company’s Gross Turnover and Gross Profit, which grew by 9.81 percent and 5.24 percent respectively; shows a sharp decline from the growth of previous year when its gross turnover rose by 22.94 percent and the gross profit increased by 26.04 percent.

“The slower growth in gross profit was due to increase in cost of raw materials, packing materials and factory overhead,” the report says.

“Cost of power and laboratory consumables increased by over 30 percent which in turn increased the overhead expenses. Operating and financial expenditures also increased,” the report observed.

The slight decline in the growth of net profit on the other hand, according to the report, is due to increase in interest and administrative expenses and provision for corporate taxes and deferred taxes.

The company, during its annual general meeting held on September 16 this year, has approved Cash Dividend at the rate of Tk. 40.00 per share for the year 2007-2008. It also approved declaration of bonus shares at 35 percent.

During the year 2007-2008, Square has contributed around Tk 1.872 billion to the National Exchequer as against some Tk 1.857 billion during the previous year. “The contribution constitutes 22.67 percent of the sales revenue in 2007-2008 as against 24.76 percent in the previous year,” the report says.

“During the aforementioned year; the company among other things, has invested around Tk. 36.42 million in improving its laboratory,” the report informed. Also during this year, the company, for the first time has exported basic chemicals worth Tk 2 million.

“Now, with the securing of license under UK MHRA, it is expected that the export potentials will increase substantially in the near future,” the report predicted.

Square, at present is exporting its pharmaceuticals and other products to around 30 countries of the world including Myanmar, Nepal, Kenya, Libya, Sri Lanka, Vietnam, Afghanistan, Iraq and Ukraine and Yemen.

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