Beximco Pharma's nine-month profit jumps to Tk704cr
According to the financial statements, while Beximco Pharma, a concern of Beximco Group, maintained strong cash flow, Beximco Ltd, another group concern, has been grappling with a cash flow crisis that has halted its operations and impaired its ability to service debt.
Beximco Pharmaceuticals, one of the country's leading drug makers, reported a robust net profit of Tk704 crore for the first nine months of fiscal 2025-2026, representing a 34% year-on-year surge driven by robust revenue growth, lower financing costs, and higher interest income.
According to the latest financial statements released today (24 June) with special approval from the Bangladesh Securities and Exchange Commission, revenue for the July-March period increased by 13% to Tk4,142 crore. This nine-month profit figure has already exceeded the company's total earnings for the entire previous fiscal year.
According to the financial statements, while Beximco Pharma, a concern of Beximco Group, maintained strong cash flow, Beximco Ltd, another group concern, has been grappling with a cash flow crisis that has halted its operations and impaired its ability to service debt.
As a result, the company is on the verge of defaulting on its outstanding Sukuk obligations and bank loans.
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Regarding its business growth, Beximco Pharma, in its financial report, said the increase in net revenue compared with the corresponding prior period, together with improved gross margin, contributed positively to overall performance.
It said, "Finance costs declined due to stronger cash inflows, while other income increased, primarily due to interest income generated from the short-term investment of surplus cash. As a result, earnings per share (EPS) recorded a notable improvement during the reporting period.
"Additionally, reduced cash outflows associated with working capital supported an improvement in net operating cash flows per share."
Beximco Pharma's special approval from the BSEC helped it avert potential delisting from the London Stock Exchange.
In addition to its current fiscal year's financial statements, the company also published its annual financial statements for FY25 and the third-quarter financials for that year.
In a board of directors meeting held on Tuesday, Beximco Pharma published its last five quarters or 15-month overdue financials.
The regulator has permitted the Beximco Group to hold the meeting, mitigating the looming risk of a delisting from the London Stock Exchange.
Following the ousting of the Awami League-led government in August 2024, Salman F Rahman, the vice chairman of Beximco Pharmaceuticals, was arrested in connection with several cases.
Later, amidst leadership changes at the regulatory body during the interim government, the BSEC appointed nine independent directors to the board of Beximco Pharma, as well as to two other listed group entities- Beximco Ltd and Shinepukur Ceramics.
Beximco Pharma legally challenged the regulator's decision by filing a writ petition, which remains pending in court.
Citing the matter as sub-judice, the company has not allowed the BSEC-appointed independent directors to take their seats on the board.
Beximco Pharma recommended a 47.5% cash dividend to its shareholders for FY25.
During the fiscal year, its consolidated net profit stood at Tk699.88 crore, which was Tk586.67 crore a year ago.
To approve the audited financial statement and the dividend, the company will set the annual general meeting time and venue following the High Court order. It also set the record date for 2 August.
