DESPITE the devastating economic disruption caused by the novel coronavirus pandemic Indies Pharma Jamaica Limited was able to record steady growth in its first quarter ended January 31, 2021.
The pharmaceutical company for the period under review achieved revenues of $223.5 million, a 15 per cent increase when compared with the $193.7 million recorded in the prior comparable quarter.
This, according to Executive Director Vishnu Muppuri in the unaudited report to shareholders, is a result of the “continued excellent performance of the sales team and the timely return of highly demanded products, despite the challenges caused by the COVID-19 impact”.
The Montego Bay-based company had successfully diversified its product offerings and launched a new line of products targeting the orthopaedic and joint rehabilitation segment of the medical profession.
Net profit for the first quarter also increased by 20 per cent to $47.5 million from the $39.6 million recorded in the previous corresponding quarter.
Muppuri noted that this increase would have been 60 per cent, as the administrative expenses also were reduced by 18 per cent from $91 million to $74 million. However, an increase in finance cost of $15.9 million, mainly due to interest payments to bondholders, made the company settle with 20 per cent year-on-year growth in the net profit.
Indies Pharma’s strategic business management resulted in a sizable surge in its net profits in 2020, reflected in a 57.7 per cent increase to $206.65 million, while the company’s comprehensive income ended the year at $278.06 million, a 104.35 per cent increase over 2019.
During the 2019-20 financial year, Indies Pharma also recorded a 5 per cent or $36.5-million increase in gross revenues from $725.45 million in 2019 to $765.95 million in 2020.
Indies Pharma, incorporated in 2003 by Dr Guna Muppuri and his wife Vishnu, .
The company provides its service across the island through over 400 pharmacies, private and public hospitals, government agencies including the National Health Fund, through medical practitioners, as well as directly to individual end-users.
It is the first and sole local pharmaceutical distribution company to be listed on the Jamaica Stock Exchange.
Total assets for the three-month period increased by 90 per cent to $1.7 billion while shareholders’ equity increased by 14.4 per cent or $98 million. This increase, Indies Pharma indicated, is largely due to the capital increase on the acquired real estate for the company’s subsidiary, Indies Pharma Business Park.
Long-term liabilities for the period under review increased to $892.7 million, predominantly due to the company attaining a bond which was used to repay the loan of $398 million used for the purchase of real estate for the construction of Indies Pharma’s corporate office, and to fund the development and approval of two new drugs by the US Food and Drug Administration.
Additionally, the adoption of International Financial Reporting Standards 16 ‘leases’ requires the lessee to record a liability for the remaining contractual life of the lease payments.
Earnings per share for the three-month period ended at $0.04 up from the $0.03 cents in the previous corresponding period.