Indies Pharma Jamaica Limited has provided the Jamaica Stock Exchange (JSE) with a new statement regarding the impact of COVID-19 on its operations, indicating that supply chain difficulties have disrupted revenues.
The directors also expressed the hope that the opening of ports will allay the persisting problem.
Indies Pharma is in the business of pharmaceuticals and real estate.
The directors stated in the JSE notice, “With the reopening of the ports and cargo supply channels, we are at an advanced stage of planning our production and supply chain channels so that we will remain self-sufficient and positively productive during our new fiscal year that just started on 1st November 2020.”
The notice continued: “The novel coronavirus disease (COVID-19), declared a global pandemic by the World Health Organization (WHO) on March 11, 2020, appears to have impacted our revenue streams negatively mainly due to the breakdown of supply chain system and therefore out of stock situation during 2020 for certain of our key products.
“Although it appeared that we were surviving the negative impact in the initial stages, it did affect us to a certain level mainly due to the disruption in supply chain and therefore the stock levels.”
The directors also explained that the company has been negatively impacted on the Jamaican market due to the limitations applied to delivery schedules and the limited number of working days.
“Our entire staff were allowed to work alternate days to maintain the social distancing and reduce the exposure during the routine working hours,” the notice explained.
The directors also stated that “a reasonable estimate of the impact cannot be made at this time,” adding, “We have been monitoring the situation regularly and have successfully implemented contingency plans to meet the challenges ahead of time so that we will continue to emerge successfully as we mitigate and move forward with the pandemic at the forefront.”
The company ended its financial year on October 31, 2020.
For the third quarter ended July 31, 2020, the company’s liabilities increased by 754 per cent (JM$498.280 million) predominantly due to loan for the purchase of land slated for the construction of Indies Pharma Ja Ltd Corporate Office and the adoption of IFRS 16 ‘leases’, which requires the lessee to record a liability for the remaining contractual life of the lease payments.
Indies Pharma generated profit for the July quarter from revenues of JM$565.83 million, representing a decrease of 1.7 per cent or J$9.98 million over the corresponding period in 2019.
For the nine-month period, profit was JM$159.48 million compared to JM$118.24 million in the similar period in 2019.
The directors said that the company’s liquidity position remained healthy with a current ratio of 1.27:1, meaning that the company has J$1.27 of current assets for every J$1 of current liabilities. Directors also disclosed at the end of the third quarter that the company had secured new funding to develop two new drug formulations.