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BEXIMCO PHARMACEUTICALS LTD.

30th July, 2009

Half Year Results - 2009

 

Beximco Pharmaceuticals Limited ('BPL' or 'Company'; AIM Symbol: BXP) today announces its results for the half year to 30th June 2009.

Highlights 

Products and Markets

• Strong sales performance during the first half of 2009 - 39.5% growth in domestic market and 47.8% growth in international market, compared to the same period of 2008.
  

• Supplied Oseflu (Oseltamivir 75mg) capsules to a number of Latin & Central American Countries and to local and international Government Agencies & NGOs to help control the Swine Flu (Influenza A, H1N1 virus) outbreak.
  
  
• Entered into a Long Term Arrangement (LTA) with Asthma Drug Facility (ADF) France, received initial orders and product supply expected to commence shortly.
  
  
• Marketing authorization received for 32 new products in eight international markets, including one product in Australia.
  
  
• The Company has developed and registered locally over 50 molecules for launch over the next twelve months, including a number of CFC free HFA based metered dose inhalers (pMDIs). These new products have strengthened the Company's generic product pipeline.
  
  
• The new projects on ophthalmic products, nebulizer solution and small volume parenterals are now complete. Two nebulizer products have been launched and a number of eye care and injectable products are expected to be launched during the third quarter of 2009. These are all new product lines for the Company. 
  

Corporate

• The Company initiated an expansion project last year due to significant demand for BPL's CFC free HFA based metered dose inhalers globally. This has involved construction and installation of a large pMDI production plant and it is estimated that this new plant will be operational by mid 2010.  
  
  
• As part of reorganization, the board appointed Mr. Nazmul Hassan MP, CEO as the Managing Director of the Company. Mr. Rabbur Reza, Director Marketing, was appointed as Chief Operating Officer. 
  
  
• The Company received a Good Manufacturing Practice (GMP) Certificate for its facility from the National Health Surveillance Agency (ANVISA) of Brazil. BPL is the first Bangladeshi company to receive this regulatory approval from ANVISA through a stringent facility audit process. With an overall pharmaceutical market of approx. US 12 billion dollars, Brazil is the second largest pharmaceutical market in Latin America and the 10^th largest in the world. Brazil is also one of the most stringently regulated and protected pharmaceutical markets in the world. The Company expects to commence exports to Brazil in H2 2009. After Chile, Brazil is the second Latin American country where the Company is going to export its products.
  
  
• The Company has now applied for admission of the GDRs issued against stock dividend to be admitted to trading on the London Stock Exchange's AIM market and admission is expected to occur on 4^th August 2009. Following admission, the total number of GDRs in issue will be 40,911,186, each representing one ordinary share of Taka 10 and all having voting rights.

Financial

• Net Sales increased by 39.5% to Tk. 2,314.71 million (2008: Tk. 1,659.34 million)  
• Profit before tax increased by 89.7% to Tk. 381.51 million (2008: Tk. 201.10 million)
• EPS increased by 56% to Tk. 2.06 (2008: Tk. 1.32)   

Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:  

'Over the last two years BPL faced serious challenges to sustain the Company's position at home and abroad. Despite these challenges, management have built a strong platform for the Company to grow significantly over the next few years. We have recently received GMP Certificates/Clearance from TGA Australia, Gulf Cooperation Council (GCC) and ANVISA, Brazil for our new oral solid dosage facility and inhaler facility. These approvals are major breakthroughs for the Company and bring us a step closer towards becoming a global pharmaceutical company over the next few years. '

The half yearly accounts can be viewed at the Company's website: www.beximcopharma.com

For further enquiries please contact:

 

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 861 9151, ext.2080

Libertas Capital Corporate Finance

Jakob Kinde / Anthony Rowland

Tel: +44 (0)20 7569 9650

Financial Dynamics

Jonathan Birt / Susan Quigley

Tel: +44 (0)20 7269 7169

Notes to Editors

 

About Beximco Pharmaceuticals Limited

Founded in 1976 and based in Dhaka, Bangladesh, BPL manufactures and sells generic pharmaceutical formulation products, active pharmaceutical ingredients and intravenous fluids. The Company also manufactures and markets its own branded generics for almost all diseases. The Company also undertakes contract manufacturing for multinational pharmaceutical companies. The Company operates from a 20 acre site in Dhaka and currently employs over 2,400 staff.

The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in East Africa, Pacific Island and Central American countries and South East Asia, including Singapore and Hong Kong.

END 

BEXIMCO PHARMACEUTICALS LTD.

Statement of the Managing Director

Dear Shareholders

We are pleased to announce the interim financial results for the half year ended 30th June 2009. 

During this first half, BPL had firm performance across all financial and operational areas. The Company has achieved net sales of Tk. 2,314.71 million- an impressive 39.50% up over Tk 1,659.34 million of comparable period of preceding financial year. Our export sales during the period was Tk. 106.81 million which is 47.81% higher on comparable basis. This half, the company earned a pre-tax profit of Tk. 381.51 million against Tk. 201.10 million of last year. EPS stood at Tk.2.06 after the issue of stock dividend for the year 2008.

Our existing brands have continued to show strong growth and contributed as main sales drivers for the company. In the overseas business we have registered thirty two new products in eight different markets including one in Australia. We have introduced three new products in the domestic markets during the period under review. Our facility to manufacture Small Volume Parenterals (SVP), Ophthalmic and Nebulizer Solutions has commenced operation. Two nebulizer products manufac- tured in this facility have already rolled over in the market. A number of other products including the Ophthalmic and SVP brands are expected to be launched shortly.

We are pleased to inform that, BPL has received GMP certificate for its facility from National Health Surveillance Agency (Anvisa) of Brazil. Once again we are the first company in Bangladesh to receive this regulatory approval from Anvisa through a stringent facility audit.

We are happy with the progress achieved in the first half and are confident that we will be able to deliver on our growth target for the year 2009.

Your continued support and co-operation is always a source of our inspiration.

Nazmul Hassan

Managing Director

BEXIMCO PHARMACEUTICALS LTD.

Balance Sheet (Unaudited)

As at 30th June, 2009

Amount in '000 BDT

	Notes	As at 30th June  2009	As at 31st December 2008	Growth %
ASSETS
Non-Current Assets		12,149,019	11,957,774	1.60
Property, Plant and Equipment-Carrying Value	3	12,129,280	11,921,073	1.75
Investment in Shares		19,739	36,701	(46.22)
Current Assets		3,240,214	2,861,892	13.22
Inventories	4	1,648,628	1,505,288	9.52
Spares & Supplies		235,625	234,530	0.47
Accounts Receivable		657,010	503,917	3.38
Loans, Advances and Deposits	5	637,262	544,509	17.03
Cash and Cash Equivalents	6	61,689	73,648	(16.24)
TOTAL ASSETS	Tk.	15,389,233	14,819,666	3.84
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' Equity		10,635,268	10,450,202	1.77
Issued Share Capital		1,511,493	1,259,577	20.00
Reserves	7	5,185,513	5,185,513	-
Retained Earnings		3,938,262	4,005,112	(1.67)
Non-Current Liabilities		2,239,743	1,767,431	26.72
Long Term Borrowing-Net off Current Maturity (Secured)	8 A	1,881,702	1,446,601	30.08
Liability for Gratuity & WPPF		287,917	274,419	4.92
Deferred Tax Liability		70,124	46,411	51.09
Current Liabilities and Provisions		2,514,222	2,602,033	(3.37)
Short Term Borrowing		1,628,770	1,461,666	11.43
Long Term Borrowing-Current Maturity	8 B	212,039	648,166	(67.29)
Creditors and other Payables		280,515	263,177	6.59
Accrued Expenses		107,274	81,777	31.18
Dividend Payable		127,930	3,170	3,935.65
Income Tax Payable		157,694	144,077	9.45
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	Tk	15,389,233	14,819,666	3.84

BEXIMCO PHARMACEUTICALS LTD. 

Profit and Loss Account (Unaudited) 

For the Half-year ended 30th June, 2009

Amount in '000 BDT

	Notes	Half-year ended 30th June 2009	Half-year ended 30th June 2008	Growth %
Net Sales Revenue		2,314,712	1,659,337	39.5
Cost of Goods Sold	9	(1,228,278)	(886,772)	38.51
Gross Profit		1,086,434	772,565	40.63
Operating Expenses :		(660,348)	(455,800)	44.88
Administrative Expenses	10	(97,949)	(69,211)	41.52
Selling and Distribution Expenses	11	(562,399)	(386,589)	45.48
Profit from Operations		426,086	316,765	34.51
Other Income	12	113,392	686	16,429.44
Finance Cost		(138,888)	(106,298)	30.66
Profit Before Contribution to WPPF		400,590	211,153	89.72
Contribution to Workers' Profit Participation/ Welfare Funds		(19,076)	(10,055)	89.72
Profit Before Tax		381,514	201,098	89.72
Income Tax		(70,490)	(49,653)	41.97
Profit After Tax		311,024	151,445	105.37
Earnings Per Share (Taka)		2.06	1.32	56.06
Number of Shares Used to Compute EPS		151,149,296	114,507,043	32.00

BEXIMCO PHARMACEUTICALS LTD. 

Statement of Changes in Equity (Unaudited) 

For the period ended 30th June, 2009

Amount in '000 BDT

		Half Year ended 30th June 2009	Half Year ended 30th June 2008
Opening Share Capital		1,259,577	1,145,070
Stock Dividend		251,916	-
Share Capital on June 30		1,511,493	1,145,070
Retained Earnings & Surpluses
Opening Balance		9,190,625	7,105,869
Net Profit after tax		311,024	151,445
Dividend		(377,874)	-
		9,123,775	7,257,314
At the end of June 30	Tk.	10,635,268	8,402,384

BEXIMCO PHARMACEUTICALS LTD.

Cash Flow Statement (Unaudited)

For the Half-year ended 30th June, 2009

Amount in '000 BDT

	Notes	Half Year ended 30th June 2009	Half Year ended 30th June 2008	Growth %
Cash Flows from Operating Activities:
Cash Receipts from Customers and Others		2,167,530	1,668,588	29.90
Cash Paid to Suppliers and Employees		(1,969,896)	(1,469,045)	34.09
Cash Generated from Operations		197,634	199,543	(0.96)
Interest Paid		(138,888)	(106,298)	30.66
Income Tax Paid		(33,160)	(21,961)	51.00
Net cash Generated from Operating Activities		25,586	71,284	(64.11)
Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment (net of IDCP)		(236,890)	(158,324)	49.62
Sale of Shares in Bextex Ltd.		124,000	-	100.00
Disposal of Property, Plant and Equipment		62	-	100.00
Net cash Used in Investing Activities		(112,828)	(158,324)	(28.74)
Cash Flows from Financing Activities :
Net (Decrease) / Increase in Long Term Borrowings		(90,623)	(155,310)	(41.65)
Net (Decrease) / Increase in Short Term Borrowings		167,104	297,269	(43.79)
Dividend Paid		(1,198)	(2,007)	(40.31)
Net cash Generated from Financing Activities		75,283	139,952	(46.21)
Increase/(Decrease) in Cash and Cash Equivalents		(11,959)	52,912	(122.60)
Cash and Cash Equivalents at Beginning of Period		73,648	85,699	(14.06)
Cash and Cash Equivalents at End of Period	Tk.	61,689	138,611	(55.49)

BEXIMCO PHARMACEUTICALS LTD.

Selected Notes to the Financial Statements (Unaudited)

For the Period ended 30th June, 2009

Amount in '000 BDT

1. Status and Activities

Beximco Pharmaceuticals Limited (BPL / the Company) is a public company incorporated in Bangladesh in 1976. The company is engaged in manufacturing and marketing of Pharmaceuticals Finished Formulation Products, Active Pharmaceutical Ingredients (APIs) and life saving Intravenous Fluids which it sells in the local as well as international markets. The company also provides contract manufacturing services. The shares of the company are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh and also in the AIM of London Stock Exchange.

2. Principal Accounting Policies

Basis of Preparation of Financial Statements

These interim financial statements should be read in conjunction with the Financial Statements for the year ended December 31, 2008 (hereafter referred to as the 'Annual Financial Statements'), as they provide an update to previously reported information.

The accounting policies used are consistent with those used in the Annual Financial Statements. The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs) including International Accounting Standards (IASs). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where necessary, the comparatives have been reclassified or extended from the half yearly report of 2008 to take into account any presentational changes made in the Annual Financial Statements or in the half yearly report 2009. The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual, the original estimates and assumptions will be modified as appropriate in the period in which the circum- stances change.

3. Property, Plant and Equipment

		As at 30th June 2009	As at 31st Dec. 2008
Cost
Land		3,277,506	3,277,506
Building and Other Constructions		1,325,276	1,320,242
Plant & Machinery		3,043,550	2,976,774
Furniture & Fixture		71,862	71,442
Transport & Vehicle		132,970	125,902
Office Equipment		242,515	238,328
		8,093,679	8,010,194
Less :Accumulated Depreciation		(2,489,058)	(2,370,777)
Written Down Value		5,604,621	5,639,417
Capital Work in Progress		6,524,659	6,281,656
Carrying Value	Tk.	12,129,280	11,921,073
4. Inventories
Finished Goods		401,020	358,010
Raw and Packing Material
(Including Work in Process and Transit)		1,213,023	1,120,521
Sample & Others		34,585	26,757
	Tk.	1,648,628	1,505,288
5. Loans, Advances and Deposits
Motor Cycle Loan		71,648	56,936
Security and Other Deposits		35,297	31,337
Prepaid VAT		154,138	130,500
Advance for Capital Expenditure		78,422	79,536
Advance for Expense		42,704	26,844
Salary Advance		47,082	44,928
Advance to material Suppliers including C&F Agents		115,362	88,661
Others		92,609	85,767
	Tk.	637,262	544,509
6. Cash and Cash Equivalents
Cash In Hand		60,701	72,657
Cash At Banks		988	991
	Tk.	61,689	73,648
7. Reserves
Share Premium		1,489,750	1,489,750
Excess of Issue Price over Face Value of GDRs		1,689,637	1,689,637
Capital Reserve		294,951	294,951
Revaluation Surplus		1,711,175	1,711,175
	Tk.	5,185,513	5,185,513
8. Long Term Borrowing
A. Non Current Maturity
Project Loan		1,753,059	1,292,230
Interest and PAD Block		96,402	143,152
Obligation Under Finance lease		32,241	11,219
	Tk.	1,881,702	1,446,601
B. Current Maturity
Project Loan		62,500	479,021
Interest and PAD Block		122,470	143,658
Obligation Under Finance lease		27,069	25,487
	Tk.	212,039	648,166

		Half-year ended 30th June, 2009	Half-year ended 30th June, 2008
9. Cost of Goods Sold
Raw and Packing Material		946,153	698,057
Factory Overhead		176,183	126,008
Depreciation		105,942	62,707
	Tk.	1,228,278	886,772
10. Administrative Expenses
Salary & Allowances		48,711	40,221
Fuel, Repairs & Office Maintenance		6,670	4,726
Traveling & Conveyance		3,546	4,770
AGM and Company Secretarial Exp.		17,927	6,247
Other Expenses		16,334	10,429
Depreciation		4,761	2,818
	Tk.	97,949	69,211
11. Selling, Marketing and Distribution Expenses
Salary & Allowances		164,630	136,280
Traveling & Conveyance		84,976	69,749
Market Research & New Products		9,066	7,526
Promotional Expenses including Sample & Literature		177,060	91,263
Delivery Commission		63,391	47,349
Depreciation		8,333	4,932
Other Expenses		54,943	29,490
	Tk.	562,399	386,589
12. Other Income
Gain on Sale of Shares		107,481	-
Dividend Income and Others		5,911	686
	Tk.	113,392	686

13. Dividend for 2008

The Board of Directors of the company has approved 10% cash and 20% stock dividend for the year 2008 in the Annual General Meeting held on June 16, 2009. The company consistently follows the policy of recognising proposed dividend after its approval by the shareholders in the Annual General Meeting. Hence the dividend for 2008 has been accounted for in the interim financial statements.

ENDIR QKLFLKDBEBBL