Bangladesh, development of Bangladesh, economic growth of Bangladesh, Economy of Bangladesh

Square Pharma, distinguished in the world of pharmaceuticals companies in Bangladesh, emerged as the top performer amid the economic turbulence of the 2022-23 fiscal year. The company's super management skills of inventory and infusion of non-operating income has been the key, according to experts.

Notwithstanding the challenges posed by currency devaluation, soaring raw material costs, and the relentless hike in energy prices, Square Pharma has achieved a historic profit milestone, tallying an impressive 19 billion BDT for 2022-23 fiscal year. The company's revenue exhibited a steady growth rate of 4.45 percent year-on-year during FY23, a testament to their outstanding performance in the midst of a tempestuous economic climate. The Chief Financial Officer at Square Pharma noted that the profits would have soared even higher if not for the adverse impacts of currency devaluation and increasing costs of raw materials and energy.

In strong contrast, Renata, Beximco Pharmaceuticals, and Beacon Pharmaceuticals faced a dent in their financials. It was contingent on their ability to pass on the additional costs to consumers. Pharmaceutical firms could only adjust prices for a mere 20 percent of their product line. Furthermore, they grappled with elevated operating expenses due to inflation and surges in utility costs.

Renata reported a seven-year low in profits for 2022-23 fiscal year, as the cost of raw materials surged by 25 percent year-on-year, solely due to currency depreciation, while energy expenditures skyrocketed by an alarming 72 percent. These supplementary expenses plunged their profits by a substantial 54.6 percent, leaving them with Tk 2.32 billion for FY23, in comparison to the previous fiscal year. Renata's core business did not lend support to their balance sheets, mirroring the predicament of many other drug manufacturers who were unable to align their product prices with the mounting production costs.

Beximco Pharmaceuticals, one of the best company in Bangladesh witnessed a 9.4 percent year-on-year decline in consolidated profits, amounting to Tk 4.52 billion in 2022-23 fiscal year. The company had embarked on expansion initiatives in preceding years, incurring foreign debts that translated to elevated interest payments. Additionally, their acquisition of Novista and Sanofi-Aventis left an indelible mark on their financial reports. In an earnings disclosure, it was revealed that a non-recurring pre-tax income of Tk 619 million was attributed to vaccine distribution fees under a contractual agreement in the previous fiscal year, which elucidated the dip in profits for FY23.

All the companies expect to turn around in 2023-24 fiscal year.