Durrant Pate/Contributor

Montego Bay-based pharmaceutical company Indies Pharma is counting its losses, having delivered a sub-par performance for the July quarter, which was fraught with numerous challenges.

Gross sales for the quarter amounted to J$260 million, down 12.3 per cent from the J$296 million booked the prior year. Gross profit for the period contracted to J$170 million in comparison to J$190 million in 2024, representing a 10.6 per cent or J$20 million decline. 

Net profit fell by 30.59 per cent or J$13.5 million in the July third quarter, compared to the prior year, while earnings per share recorded a decline of 30.5 per cent to J$0.023, coming from J$0.033 in 2024.

Results for combined three quarters

For the nine months ending July 31, Indies Pharma Jamaica earned gross sales of J$856 million versus J$867 million in the prior year, a decline of 1.3 per cent. Gross profit for the period closed on J$589 million in comparison to J$588 million in 2024, representing a 0.3 per cent increase of J$1.6 million over the prior year.

Net profit dipped 4.1 per cent or J$7.21 million for the combined three quarters, compared to the prior year 2024. Earnings per share also declined 4.1 per cent to J$0.126 for the period under review, down from $0.132 in 2024. 

Late arrivals of the out-of-stock items, resulting in the loss of sales and strategic increase of marketing and sampling efforts, have resulted in a marginal loss of net revenues for the quarter, while the continued delays in the arrivals of the new product approvals from the Ministry of Health negatively impacted the projected growth in the revenues. 

On the positive side, total assets valued as of July 31 closed on J$2.783 billion, up from J$2.228 billion in 2024, an increase in value by J$555 million or a 25 per cent increase. This is due to the recent revaluation of a three-acre property, which is designated for the construction of Indies Pharma’s corporate headquarters.

Big jump in property value

This said property has finally obtained full approvals for development and construction by the planning authorities. The fully approved asset is now valued at J$1.2 billion, representing an increase of J$435 million in the value from the prior valuation in September 2021. This resulted in shareholder equity rising to J$1.717 billion in the Q3 2024-25 period compared to J$1.248 billion as at Q3 2023-24, an increase of 38 per cent. 

Total liabilities were recorded in the current year Q3 2024-25, with a value of J$1.065 billion compared to Q3 2023-24 of J$980 million, an increase of nine per cent. Obtaining approvals from the planning authorities for the real asset and the proportionate stupendous capital gain is another strategic investment milestone for Indies Pharma to celebrate, in addition to the prior year’s USFDA approvals for one of our products, which is currently on target for US market entry.