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Indies Pharma sees 28 per cent profit uptick under COVID

Net profit for Indies Pharma Jamaica Limited jumped 28 per cent to J$108.84 million from $84.63 million, a J$24.21 million or 28.60 per cent  over the six months ended April 30, 2020, compared with the previous year.
Overall, revenues for the six months ended April were J$400.96 million, up 11 per cent  or J$39.66 million over the corresponding period in 2019.

For the April quarter, revenue saw an uptick of $207.24 million compared to $193.12 million in the similar period in 2019.

The pharmaceutical company which started in 2003, develops and markets prescription and over-the-counter drugs and is also a part of the Bioprist Group that is into property development and business process outsourcing.

Net profit for the period, was almost double year over year, with $68.53 million earned compared to $32.57 million in 2019.

Earnings per share (EPS) for the six-month period rose to J$0.08 cents per share compared to J$0.06 cents in the prior period 2019.

Vishnu V. Muppuri co-founder pointed out, in comments attached to the six month financials, that this  book value EPS of J$0.08 reflects a 33.3 per cent increase in shareholders’ equity over the corresponding period in 2019.

Total gross profit for the six-month period was J$278.12 million, representing a 10.7 per cent or J$26.94 million compared with 2019.

Administrative and other expenses increased to J$173.89 million, which represents a J$1.51 million increase compared to same period in the prior year, mainly due to costs related to increase in business activity, Muppuri said.

She noted that significant increases were incurred for depreciation and lease costs and the adoption of IFRS 16 ‘leases’ which requires the lessee to record a liability for the remaining contractual life of the lease payments.
There was also a reduction in trade payables.

Equity for the company increased by 35.3 per cent or J$228.09 million to J$874.78 million when compared to the similar quarter in the previous year, as a result of the revaluation of company’s assets and an increase in retained earnings for the period.

Current liabilities increased by 562 per cent (J$467.26 million), predominantly due to a short-term loan borrowed to purchase land which will be used for the construction of Indies Pharma Ja Ltd Corporate Office and warehousing.

Indies Pharma Business Park, a subsidiary of the Company, has acquired a parcel of land situated at Lot 1 Montego Park Estates Ironshore, St James which is being used for the development.

The company incurred a debt of $398.75 million, which represent land cost for corporate head office and warehousing.

Muppuri said the company’s liquidity position “remains healthy,” with a current ratio of 1.58:1, meaning that the company has J$1.58 of current assets for every J$1 of current liabilities.

She noted that, “despite severe fluctuations and downward performance of the stock market due to COVID-19 pandemic, Indies Pharma stock price closed at J$2.35 on April 30, 2020, representing an increase 56.7 per cent or J$0.85 per share since the company’s Junior Market Listing on the Jamaica Stock Exchange (JSE) in August 2018.”