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

Property acquisition, revaluation gains drive asset growth for Indies Pharma

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

Indies Pharma Jamaica Limited, in freshly published, audited financial results for the period ended October 31, 2020, showed asset improvement of JM$1 billion.

At year end, total assets were JM$1.78 billion, compared to JM$770.9 million in October 2019.

The year’s revenue, according to the audited results, was JM$765.95 million, compared to JM$729.45 million in 2019.

Net profit in the results came out at JM$206.65 million, up from JM$130.96 in 2019.

Meanwhile, total comprehensive income increased year over year to $278.06 million, up from $136.11 billion in 2019.

Earnings per share at year end was 16 cents per share, compared to 10 cents per unit in 2019.

(Photo: Harvard Health)

Improvement and growth

The improvement in total comprehensive income came from revaluation gains of JM$70.71 million in 2020 and profit from gains on disposal of property, which amounted to JM$69,999.

In comments attached to unaudited results in December, management said that the company would have seen a significant growth in its revenues were it not not for the pandemic.

Long-term liabilities for Indies Pharma increased to JM$882 million due mainly to the company securing a bond that it used to repay a loan of JM$398 million 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 at the USFDA.

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

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