Square Pharma posts record Tk2,770cr profit, recommends 130% cash dividend

The pharmaceutical company’s consolidated EPS rose to Tk31.24 in FY26 from Tk27.04 a year earlier, while the proposed investment will support modernisation and expansion.

Square Pharmaceuticals PLC, the country’s leading drug manufacturer, has reported a record consolidated net profit of Tk2,770 crore for FY26 and recommended its highest-ever cash dividend of 130%, alongside plans to invest Tk725 crore to expand production capacity and strengthen its product portfolio.

The company’s consolidated profit rose 16% year-on-year from Tk2,396 crore in FY25, continuing its growth trajectory over the past five years. Profit increased from Tk1,817 crore in FY22 to Tk1,898 crore in FY23 and Tk2,092 crore in FY24 before reaching the latest record.

The board recommended a 130% cash dividend, equivalent to Tk13 per share, for the financial year ended 30 June 2026, surpassing the previous record payout of 120% declared for FY25.

The company’s annual general meeting is scheduled for 15 December, while the record date for the dividend has been set for 16 November.

Square Pharma’s consolidated earnings per share rose 16% to Tk31.24 in FY26. Its net asset value per share increased 13% to Tk178.99, while net operating cash flow per share stood at Tk18.65.

The company has also approved Tk725 crore for balancing, modernisation, rehabilitation and expansion (BMRE), capital machinery purchases and land acquisition to support future growth.

These consolidated figures incorporate performance from Square Pharmaceuticals Kenya EPZ Ltd, Square Lifesciences Ltd, and associate companies including Square Textiles, Square Fashions, and Square Hospitals.

Infographics: TBS

A senior company official said the investment was part of its long-term strategy to reinforce its leadership in the pharmaceutical industry. The plan is expected to help increase production capacity, modernise manufacturing facilities and expand the range of medicines, including biological products and specialised treatments for cancer and chronic diseases.

Since the Covid-19 outbreak in 2020, Square Pharma has invested around Tk2,500 crore in land, machinery and factory expansion projects to meet rising domestic and international demand.

Bangladesh’s pharmaceutical market has benefited from growing healthcare awareness, population growth and rising demand for treatments for chronic conditions. However, dependence on imported active pharmaceutical ingredients, particularly from China and India, remains a challenge for local manufacturers.

Founded in 1958 by Samson H Chowdhury, Square Pharma has grown into the country’s leading drugmaker, producing around 1,000 types of medicines and exporting to 42 countries across Asia, Africa and Latin America. It became the first Bangladeshi company to export medicines abroad in 1987. Listed on the stock exchanges since 1995, its shares closed at Tk218.80 today (26 October).

Source: The Business Standard