Navana Pharma posts record revenue, profit amid higher costs

The firm declares a 13% cash dividend for FY23. AGM on 28 December, record date 19 November

Despite escalating expenses and the dollar becoming pricier, Navana Pharmaceuticals Limited has registered the highest-ever revenue and profit in the fiscal 2022-23. The stellar business can be attributed to the company’s strategy of ramping up the production of high-selling drugs.

In FY23, the publicly listed drug-maker’s revenue jumped by 20% year-on-year and stood at Tk570 crore, while its net profit surged 31% and stood at Tk35.69 crore.

Abu Hurayra, chief financial officer (CFO) at Navana Pharma, told The Business Standard, “Most pharma companies are now facing challenges and seeing business slowdown because of the increase in the prices of raw materials due to appreciation of the dollar, and also because of higher utility cost.”

“But thanks to our collective drive on sales, we have managed to maintain growth in both revenue and profit.”

“When the raw materials became costlier, we adopted the strategy of boosting the production of high-end drugs, which helped to post such handsome numbers.”

“It’s not like the rising expenditures did not have any impact on our business at all. But because of our higher sales, the impact was not as severe as it was for other firms,” he added.

Owing to an increase in profit, Navana Pharma declared a 13% cash dividend for FY23. In the previous fiscal, it paid an 11% cash dividend.

Despite the company’s whopping business performance, its share price at the Dhaka Stock Exchange (DSE) inched down to Tk84.8 apiece on Monday from the previous day’s trade.

The annual general meeting (AGM) will be held on 28 December through a digital platform, and record date has been fixed on 19 November to identify the shareholders eligible for the dividend.

The net asset value increased by 15% to Tk437.24 crore, and its net operating cash flow per share declined 27% to Tk1.80 owing to increase in the number of ordinary shares for the initial public offering (IPO).

Navana Pharmaceutical had raised Tk75 crore from the stock market through an IPO in 2022.

Incorporated in 1986 in Bangladesh, Navana Pharma produces both human and animal drugs.

The veterinary division manufactures and markets more than 123 high-quality medicines and feed supplements for different segments including poultry, dairy, and aqua products.

On the other hand, the human health division produces more than 277 drugs – tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams, ointments, etc.

Navana Pharma sells these products in the domestic and international markets. It exports products to 15 countries.

Source: The Business Standard

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