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Indies Pharma records 46% profit increase

Indies Pharma Jamaica Limited indicates it achieved annual revenues of J$765.9 million, up five per cent, over the corresponding period in 2019, according to its fourth quarter unaudited financial results.

Dr Guna Muppuri, founder and CEO of Indies Pharma Jamaica Limited, stands in front of the companys signage. (Photo: Jamaica Observer)

Net profit increased to J$199.1 million, up 46.3 per cent over the $130.96 million made in the previous year.

Management, in comments attached to the results, said the company would have seen a significant growth in its revenues were it not for the pandemic.

Gross profit for the 12-month period was J$525 million representing a 14.1 per cent or J$65 million increase when compared with the similar period in 2019.

Gross profit for the 12-month period was J$525 million representing a 14.1 per cent increase. (Photo: Harvard Health)

Similarly, an increase of 11.5 per cent or J$13 million was also recorded for the three-month period ending October 31, 2020 in comparison to the same period in 2019.

Administrative and other expenses decreased by J$18.4 million mainly due to the decline in rent, vehicle expenses, IT, security and one-off expenses noted in the prior year.

Earnings per share (EPS) for the year increased by 50 per cent to J$0.15 cents per share compared to J$0.10 cents in the prior period 2019.

Shareholders’ equity increased by 14.4 per cent or J$98 million due to a revaluation of company’s assets and an increase in retained earnings for the period.

Long-term liabilities for Indies Pharma increased to J$882 million due mainly to the company securing a bond which was used to repay the loan of J$398 million used for the purchase of land for the construction of its new corporate office.

Funds from the bond will also be used to increase warehousing capacities and to fund the development and approval of two new drugs in the United States.

Results were also affected by the adoption of IFRS 16 ‘leases’ which requires the lessee to record a liability for the remaining contractual life of the lease payments. There has also been a decrease in trade payables.

Management noted the company’s liquidity position “remains healthy with a current ratio of 22:1, meaning that the company has J$22 of current assets for every J$1 of current liabilities.”

The return on equity (ROE) for the fourth quarter increased to 26 per cent from 21.5 per cent in the previous quarter.

“This shows a strong indication of how well Indies Pharma Jamaica Limited is managing its assets to create profits,” management commented.

The company has done well during the pandemic and is poised to deliver consistently better profits said the letter to shareholders, signed by Vishnu Muppuri Co-Founder, Executive Director and COO.