Renata PLC, a leading pharmaceutical manufacturer, witnessed impressive profit growth in the January to March period of the fiscal year 2023-24, attributed to robust sales and effective cost management strategies. The company’s profit surged by 21.4 percent year-on-year to Tk 72 crore in the third quarter, with earnings per share reaching Tk 6.33, up from Tk 5.18 in the same period the previous year.
During this quarter, Renata’s sales soared by 9 percent year-on-year to Tk 921 crore, as reported in the company’s board meeting held today. Jubayer Alam, the company secretary, highlighted that increased sales and prudent cost management were instrumental in achieving higher profits. He explained that a strategic cost management program was initiated to counteract rising finance costs due to currency devaluation, high-interest expenses, and depreciation from new capital investments.
Interestingly, despite the typical upward trend in operating costs observed in every quarter, Renata managed to reduce its operating costs by approximately 1 percent year-on-year to Tk 302 crore in the January-March quarter.
However, the company’s financial report for the nine months ending in March revealed a 4 percent decline in profits year-on-year to Tk 258 crore, with earnings per share falling to Tk 22.54 from Tk 23.47 in the corresponding quarter of the previous fiscal year. Nonetheless, the cumulative profit for the first three quarters surpassed the total profits earned in the entirety of the fiscal year 2022-23.
Alam expressed optimism regarding the company’s performance for the remainder of the fiscal year, anticipating satisfactory profit growth. With profits exceeding last year’s figures in just three quarters, he believes even a modest performance in the fourth quarter would significantly fuel growth.
Renata PLC has been strategically investing in expanding its capacity and introducing new technologies in recent years. In the fiscal year 2023-24, the company invested Tk 330 crore in various projects including an automated warehouse, injectable facility, oncology solid, extensions of multiple depots, and a power plant. Additionally, significant investments were made in product development and research and development, resulting in the development of 70 bioequivalent products sold in 44 countries, including Bangladesh.
Despite the positive financial performance, Renata’s stocks witnessed a slight decline of 0.58 percent to Tk 767 at the Dhaka Stock Exchange (DSE) today. The company’s paid-up capital stands at Tk 114 crore, with reserve and surplus totaling Tk 2,912 crore, according to DSE data. Renata PLC also provided a generous cash dividend of 62.5 percent to its shareholders for the fiscal year 2022-23.