Earnings Report /
Bangladesh

Beximco Pharmaceuticals: Q1 FY22 – Earnings increased by c36% YoY driven by c22% sales growth

  • BXPHARMA reported BDT 3.28 EPS (NPAT BDT 1,465mn) in Q1 FY22, implying c36% YoY growth

  • Revenue increased by 22% YoY because of higher sales of drugs to treat COVID symptoms and normalized doctor consultancy.

  • BXPHARMA has completed the acquisition of Sanofi Bangladesh Limited (SBL), effective from October 1, 2021

Shopnil Paul
Shopnil Paul

Research Associate

Tanay Kumar Roy
Tanay Kumar Roy

Research Analyst

IDLC Securities
14 November 2021
Published by

BXPHARMA reported BDT 3.28 EPS (NPAT BDT 1,465mn) in Q1 FY22, implying c36% growth over BDT 2.41 EPS (NPAT BDT 1,074mn) in Q1 FY21. The c36% growth in earnings is driven by c22% growth in top-line revenue and a 63bps improvement in gross margin.

Consolidated Revenue reached BDT 8,469mn in Q1 FY22, implying c22% YoY growth. The standalone revenue of BXPHARMA increased by c23% YoY.

We think the growth in sales is driven primarily by two factors. Firstly, the sales of medicine to treat the COVID-19 symptoms increased when the number of cases spiked in mid Q1 FY22. In addition, the consumption of drugs for seasonal flu and fever increased. Secondly, the doctor-patient consultancy has normalized now, resulting in growth in sales of prescription drugs. Please note that, in Q1 of the previous year, the doctor-patient consultancy was less than the normal level in fear of the novel virus.

Gross margin improved by 63bps to 48.1% in Q1 FY22. However, we think the gross margin may contract in the impending quarter due to the negative impact of the global commodity price hike. The cost of packaging from the pharmaceutical company is likely to increase as globally the price of oil has increased by c101% YoY (November 2021).

BXPHARMA has completed the acquisition of Sanofi Bangladesh Limited (SBL). It acquired a 54.6% stake in SBL for BDT 4.70bn (GBP 39.35mn). The transfer of ownership has been in effect from October 1, 2021 (thus not taken in consolidation in Q1 FY22).