Modest growth in both profits and revenues in Q1

Montego Bay-based pharmaceutical company Indies Pharma Jamaica has continuedits positive financial performance into 2021, recording modest growth in both profits and revenues in the first quarter.

Gross profit for the quarter ended January 31, 2021 increased to J$138.1 million, representing an eight per cent or $10.2 million when compared with the similar period in 2020. Net profit also increased to J$47.5 million, depicting a 20 per cent improvement from $39.6 million recorded in the prior comparable period 2020.

Vishnu Muppuri, Indies Pharma co-founder, executive director & COO, said that “this increase would have been 60 per cent, as the administrative expenses also were reduced by 18 per cent from $91 million to $74 million”.

Added Muppuri: “However, increase in finance cost of $15.9 million, mainly due to the interest payment to bond holders, made the company settle with 20 per cent year-on-year growth in net profit.”

At the end of the first quarter, Indies Pharma Jamaica earned gross revenues of $223.5 million compared to $193.7 million in the prior comparable quarter 2020. This increase represents 15 per cent or J$29.8 million and is a result of the company’s continued excellent performance of the sales team and the timely return of highly demanded products despite the challenges caused by the COVID -19 impact.

Big jump of 90% in total assets

Total assets at the end of the quarter increased by 90 per cent, to $1.7 billion compared to $927.8 million in the comparative quarter 2020. Shareholders’ equity grew by 14 per cent or $99.4 million when compared to the similar period in the previous year.

This increase is largely due to the capital increase on the acquired real estate for the company’s subsidiary, Indies Pharma Business Park. Earnings per share for the three-month period increased by 33 per cent to $0.04 cents per share compared to $0.03 cents in the prior period 2020.

Long-term Liabilities increased to $892.7 million from $108.3 million in the prior comparative period and as stated in previous quarters, this is as a result of a bond attained towards ‘Growth Capital’ that was used to repay the loan of $398 million used for the purchase of real estate and to fund the development and approval of two new drugs at the FDA in the United States.

Additionally, the adoption of IFRS 16 ‘leases’ continues to affect liabilities which requires a lease liability to be recorded. Indies Pharma continues to have an excellent performance and remain healthy with a current ratio of 17:1, meaning that the company has $17 of current assets for every $1 of current liabilities.

In concluding, Muppuri stressed that, “as always, Indies Pharma Jamaica Limited continues to do their best in this challenging business environment through strengthening relations with customers, shareholders and the wider Indies Pharma family”.