BEXIMCO PHARMACEUTICALS LTD.
FINANCIAL STATEMENT ANALYSIS
2009
Beximco Pharmaceuticals Ltd.
At A Glance
Beximco Pharmaceuticals Ltd ( Beximco Pharma ) belongs to Beximco Group, the largest private sector industrial conglomerate in Bangladesh which has diversified into textile, apparels, pharmaceuticals, ceramics, aviation, real estate, ITS & media and energy sectors. Most of these companies are actively being traded in the stock exchange of Bangladesh with a total market capitalization of more than $1.65 billion. Incorporated in the late 70s, Beximco Pharma began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn, USA and selling them in the local market, which were later manufactured and distributed under licensing arrangement. Since then, the journey continued, with a vision to go a long way and today, Beximco Pharma is one of the largest exporters of medicine in Bangladesh, wining National Export (Gold) Trophy for a record three times. Major global regulatory bodies have accredited Beximco Pharma’s manufacturing facilities, and it has expanded its geographic footprint to 40 countries. The company has the unique distinction of being the only company in Bangladesh to get listed on AIM of London Stock Exchange
Beximco Pharma produced produces pharmaceutical formulations and active pharmaceutical ingredients, having a current portfolio of more than 400 products and a dedicated team of more than 2500 employees. In its long journey over three decades, the simple principle on which it was founded remains the same: producing high quality generics and providing better access to medicines at a much affordable cost.
Milestones
2009:
§ Only Bangladeshi company to receive GMP Certificates form ANVISA, Brazil.
§ ION unit was launched for producing injectables, ophthalmic and nebulizer solutions.
2008:
§ First and only Bangladeshi company to receive GMP Clearance from Therapeutic Goods Administration (TGA) Australia, and Gulf Central Committee for Drug Registration, for GCC member States.
§ Technology transfer arrangement to manufacture Roche’s ARV drug Saquinavir.
2007:
§ New Oral Solid Dosage (OSD) facility was commissioned according to US FDA standard.
2006:
§ Launched CFC free HFA inhalers for the first time in Bangladesh.
2005:
§ Only company in Bangladesh to get listed on Alternative Investment Market (AIM) of London Stock Exchange (LSE) though issuance of GDRs.
§ Construction of state-of-the-art USFDA standard oral solid dosage facility was completed.
2003:
§ Became the first company to introduce anti-retroviral (ARV) drugs in Bangladesh.
2001:
§ First and only Bangladeshi company to enter Singapore, one of the more regulated markets in Asia.
2000:
§ Only company to achieve National Export Trophy (Gold) for the record 3rd time.
1996:
§ IV unit (former Beximco Infusions Ltd.) received ISO 9001 Certification form TUV-Cert Germany.
1993:
§ Russia became the first export destination for formulation products.
1992:
§ Export operation started with APIs.
1985:
§ Listed on Dhaka Stock Exchange as a public limited company.
1983:
§ Launched own formulation brands.
1980:
§ Started manufacturing products of Bayer AG, Germany and Upjohn Inc, USA under license.
1976:
§ Company incorporated.
Highlights of 2010
- Beximco Pharma Donates Oseflu (Oseltamivir) capsule to ICDDR,B for Swine Flu treatment
- Price Sensitive Information to Shareholder
- Beximco Pharma is first Bangladeshi company to receive GMP Certificate from National Health Surveillance Agency (Anvisa) of Brazil
- Beximco Pharmaceuticals exports Oseltamivir capsules to Latin and Central America
§ Beximco Pharmaceuticals Limited (“BPL” or the “Company”) Trading Update – Reports sales growth of 23 per cent.
Global Footprints
Beximco Pharma has a global footprint in 40 countries across 4 continents. Our positions in many Asian and African countries are stronger than ever. Although currently we are operating mostly in less regulated markets, we are increasingly focused on regulated markets of USA and EU for value added generics. In 2009, our export turnover crossed $4 million registering a growth of 59% over 2008. Although our export sales contribute little to the total turnover of the company, the growth rate shows we are going in the right direction. During the year we registered 51 products in twelve countries, and became the first Bangladeshi company to export inhaler products to Malaysia. The company received increasing response from Central America and Africa and we have strengthened our distribution and marketing efforts in those regions. Our products are widely prescribed by physicians with trust and confidence and we are being supplied to renowned hospitals and institutes in many countries which include Raffles Hospital, Heathway Medical Group and K K Women & Children Hospital in Singapore, Asthma Drug Facility (ADF) of France, CENABLAST in Chile, and MEDS and Kenyatta National Hospital in Kenya.
The company has a clear strategy to capitalize on the generic drug opportunities in overseas markets-both existing as well as newer and developed markets. To realize the export potential in global generics, particularly the value added generics in the regulated markets, the company has given top priority in developing international markets and it continues to pursue approvals from global drug regulatory authorities. Regulatory approval from ANVISA (Brazil) during the year makes ways for the company to enter the attractive and emerging markets of Latin America.
The company entered several new markets in the year and currently it has global footprints in 40 countries. It has taken aggressive plans to capitalize on the global generic drug opportunities with increasing focus on regulated markets of EU, USA and Australia.
v In 2009, 51 products registered in 12 countries Export turnover grew 59% over 2008.
Product Registration Worldwide
| Australia 1 | Asia 322 | Africa 75 | Middle East 22 | Central & Latin America 11 |
Key Operating and Financial Data
Taka in Thousand
| Particulars | 2009 | 2008 | 2007 | 2006 |
| Authorized Capital Paid up Capital Total Sales Export Sales Gross Margin Profit Before Tax Net Profit Fix Assets (Gross) Shareholder’s Equity | 9100000 1511493 4868255 272126 2302048 867467 624740 15621366 10885707 | 2000000 1259577 4010167 170604 2007296 714121 545341 14291850 10450202 | 2000000 1145070 3597025 122752 1629515 399678 353068 10516030 8250940 | 2000000 1040973 3702317 115099 1731086 523243 470659 9885840 7949920 |
| Dividend Earnings per Share (EPS) Marketing Price Per Share (at end of the year) Price Earnings Ratio (Time) Number of shareholders Foreign Investors ICS including ICB Investors Account Sponsors, General Public & Other Institutions Number of Employees | 15% 4.13 155.8 37.72 80189 54 890 79245 2511 | 30% 3.61 167.7 46.45 65556 54 885 64617 2310 | 15% 2.80 58.9 21.04 53892 60 879 52953 2384 | 15% 4.11 53.7 13.06 48932 58 986 47888 2403 |
BEXIMCO PHARMACEUTICALS LIMITED
Balance Sheet
As At 31st December 2009
| | 2009 Tk. | Change % | 2008 Tk. | Change % |
| ASSETS | ||||
| | | | | |
| Non - Current Assets | 12975195529 | 65.2 | 11957773787 | 80.69 |
| Property, Plant And Equipments - Carrying Value | 12966587178 | 65.2 | 11921072697 | 80.44 |
| Intangible Assets | 5726525 | 0.03 | 0 | |
| Investment In Share | 2881826 | 0.01 | 36071090 | 0.24 |
| | | | | |
| Current Assets | 6916737893 | 34.8 | 2861891654 | 19.31 |
| | | | | |
| Inventories | 1722953284 | 8.7 | 1505288093 | 10.16 |
| Spares & Supplies | 242034855 | 1.2 | 234530326 | 1.58 |
| Accounts Receivable | 694111730 | 3.5 | 503916401 | 3.40 |
| Loans, Advance & Deposits | 699204450 | 3.5 | 544509106 | 3.67 |
| Short Term Investment | 2500000000 | 12.6 | 0 | 0 |
| Cash & Cash Equivalent | 1058433574 | 5.3 | 73647728 | 0.50 |
| | | | | |
| TOTAL ASSETS | 19891933422 | 100.0 | 14819665441 | 100 |
| SHAREHOLDERS' EQUITY & LIABILITIES | | | | |
| Shareholders' Equity | 10885706614 | 54.7 | 10450202145 | 70.52 |
| | | | | |
| Issued Share Capital | 1511492960 | 7.6 | 1259577470 | 8.50 |
| Share Premium | 1489750000 | 7.5 | 1489750000 | 10.05 |
| Excess Of Issue Price over Face Value Of GDRs | 1689636958 | 8.5 | 1689636958 | 11.40 |
| Capital Reserve On Merger | 294950950 | 1.5 | 294950950 | 1.99 |
| Revaluation Surplus | 1617361714 | 8.1 | 1711174747 | 11.55 |
| Retained Earnings | 4282514032 | 21.5 | 4005112020 | 27.03 |
| Non - Current Liabilities | 6684775166 | 33.6 | 1767431029 | 11.93 |
| Long Term Borrowings- Net Off Current Maturity (Secured) | 1924933065 | 9.7 | 1446600500 | 9.76 |
| Fully Convertible, 5% Dividend, Preference Share | 4100000000 | 20.6 | 0 | 0 |
| Liability Of Gratuity & WPPF | 307425614 | 1.5 | 274419253 | 1.85 |
| Deferred Tax Liability | 352416487 | 1.8 | 46411276 | 0.31 |
| | | | | |
| Current Liabilities & Provisions | 2321451642 | 11.7 | 2602032267 | 17.56 |
| Short Term Borrowings | 1451326354 | 7.3 | 1461666227 | 9.86 |
| Long Term Borrowings- Current Maturity | 308820056 | 1.5 | 648165841 | 4.37 |
| Creditors & Other Payables | 409898122 | 2.1 | 263176822 | 1.78 |
| Accrued Expenses | 79094905 | 0.4 | 81776450 | 0.55 |
| Dividend Payable | 1727724 | 0.0 | 3169568 | 0.02 |
| Income Tax Payable | 70584481 | 0.3 | 144077359 | 0.97 |
| | | | | |
| TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | 19891933422 | 100.0 | 14819665441 | 100 |
BEXIMCO PHARMACEUTICALS LIMITED
Profit and Loss Account
For The December 31st 2009
| Increase Or ( Decrease) During 2009 | ||||
| | 2009 Tk. | 2008 Tk. | Amount | Percent |
| Net sales Revenue | 4868254915 | 4010167057 | 858087840 | 21.4 |
| Cost Of Goods Sold |  (2566206626) |  (2002871181) |  563335445 | 28.1 |
| Gross Profit | 2302048289 | 2007295878 | 294752411 |  14.7 |
| Operating Expenses: | (1300765878) | (1008501030) | 292264848 | 29 |
| | | | | |
| Administrative Expenses | (215192547) | (153464283) | 61728264 | 40.2 |
| Selling, Marketing And Distribution Expenses | (1085573331) | (855036787) | 230536544 | 27 |
| | | | | |
| Profit From Operation | 1001282411 | 998794848 | 2487563 | 0.25 |
| | | | | |
| Other Income | 198986379 | 686510 | 198299869 | 28885.2 |
| Finance Cost | (289427992) | (249654298) | 39773694 | 15.9 |
| | | | | |
| Profit Before Contribution To WPPF | 910840798 | 749827060 | 161013738 | 21.5 |
| | | | | |
| Contribution To Workers Contribution / Welfare Fund | (43373371) | (35706050) | 7667321 | 21.5 |
| | | | | |
| Profit before Tax | 867467427 | 714121010 | 153346417 | 21.5 |
| Income Tax Expense | (242727120) | (168779737) | 73947365 | 21.5 |
| Current Tax | 0 | (173720430) | (173720430) | |
| Deferred Tax (Expense) / Income | (242727120) | 4940693 | 237786427 | 4812.8 |
| | | | | |
| Profit After Tax Transferred To Statement Of Changes In Equity | 624740307 | 545341273 | 79399034 | 14.6 |
| | | | | |
| Earnings Per Share (Of Tk.10 Each) (Adjusted EPS Of 2008) | 4.13 | 3.61 | 0.52 | 14.4 |
| | | | | |
| Number Of Share Used To Complete EPS | 151149296 | 151149296 | | |
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| Conclusion: After Analyzing the Financial statements I have inferred the following conclusions:
Appendix: · Dividends Paid during 2009 was Tk. 127399591 & 2008 was Tk. 57369278. · Interest Paid During 2009 was Tk. 248370850 & 2008 was Tk. 214066707 · Total Assets During 2007 was Tk. 11953418940 · Accounts Receivable on 2007 was Tk. 4996807992 · Inventories on 2007 was Tk. 1470152242 References: Ø Accounting Principles-Weygandt, Kieso and Kimmel. Ø www.beximco-pharma.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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