Durrant Pate/Contributor

Montego Bay-based Indies Pharma has gained ground during the July third quarter but still managed to see profit from operations for the combined three quarters, registering a decline.

For the third quarter, revenues increased by J$35 million or 13 per cent higher to close at J$300 million, up from from J$265 million of the corresponding periods of 2022. This was as a result of the strong demand for the Indies Pharma Products along with the strategies implemented to drive sales.

Gross profit for the quarter increased to J$215 million, which represented an increase of 18 per cent, or J$34 million higher in comparison to the J$182 million posted for the third quarter in 2022. One of the main contributing factors is the robust approach taken in monitoring inventory and mitigating the write off expired stock.

Big rise in operating expenses

Operating expenses jumped by 41 per cent, or J$37 million to J$128 million for the quarter in comparison to J$91million for the same period last year. Increased expenditures in several areas including parent company, Bioprist Royalty, amounted expenses of J$23 million because of a change in accounting policy.

This increase was expected in this current year of adoption, however, this is expected to be normalised in the subsequent year. Building maintenance and repairs, admin and drug permits and motor vehicle expenses were also contributory factors to the rise in operating expenses.

Net profit for the quarter increased by 16 per cent to J$84 million, up from J$73million during the same period last year. Earnings per share (EPS) during the third quarter 2023 increased by 20 per cent to J$0.06 per share, up from J$0.05 last year.

The management reports that the company remains healthy, growth focused and continues to deliver and maintain a consistent upward trend in its performance and profitability to its shareholders.

Nine-month financials

For the nine-month period ended July 31, 2023, Indies Pharma Jamaica earned gross revenues of J$787million, which is eight per cent higher than the J$728 million in the comparable period of 2022. Gross profit for the combined three quarters increased to J$555 million, representing an 18 per cent increase or J$34 million when compared to the similar period in 2022.

This is attributable mainly to enhanced customer loyalty towards the company’s product and service quality, in tandem with the strategic expense mitigation and management tactics employed by the company. Administrative expenses increased by 23 per cent or J$64 million year over year principally due to high-level of fleet vehicles maintenance, salaries, royalty obligation, building repairs & maintenance and admin & drug permits.

This in the main was responsible for ‘Profit from Operations’ declining by six per cent to J$222 million in 2023 from J$237 million in the similar period of 2022. This increase in admin expenses also filtered down to the bottom line and caused net Profit for the nine-month period’ to decline by eight per cent to J$173 million from J$188 million for the combined three quarters of 2022.

Total assets at the end of the nine-month period stood at J$2.2 billion, almost the same as in the comparative period of 2022. Shareholders’ equity has increased by three per cent this year to J$1.18 billion compared to J$1.14 billion in the prior period of 2022 while total liabilities decreased by four per cent in 2023 to J$982 million from J$1.02 billion in 2022.

According to co-founder and executive director Vishnu V. Muppuri, “this augurs well for the continuing financial stability and soundness of the company. The J$805 million bond attained in 2020 towards ‘Growth Capital’ continues to remain on the books as we continue to grow the company through the organic development and approval of two new drugs at the FDA (Food and Drug Administration) for the United States market.”