However, net profits for the nine-month period was down $55 million
Montego Bay-based pharmaceutical company, Indies Pharma Limited is reporting good third quarter performance with revenues going up.
Revenue for the third quarter, ended July 2021 was $208 million, 26 per cent higher than the $165 million recorded in the prior third quarter, ended July 2020. For the nine-month period, Indies Pharma earned gross revenues of $633 million, 12 per cent higher than the $566 million recorded in the prior nine-month period of 2020.
Gross profit for the three quarters showed a minimal increase of one per cent or $3 million when compared to the prior nine-month period in 2020, while gross profit for the third quarter registered an increase of 20 per cent or $24 million when compared with the prior third quarter ended July 2020. Indies Pharma acknowledged that the challenges related to the COVID-19 pandemic such as increased logistics cost and currency exchange continues to be unavoidable.
However, the pharmaceutical company continues to implement strategies to mitigate the impact.
Maintaining profits from operations
Indies Pharma maintained profit from operations for the nine-month of its 2021 financial year of $153 million, the same was reflected in the prior comparative nine-month period in 2020. However, the third quarter has bounced back and recorded an increase of 34 per cent or $16 when compared to the third quarter, ending July 2020.
Net profit for the nine-month period 2021 was $104 million compared to the $159 million for the same nine-month period in 2020. The lower net profit is primarily attributed to the finance cost associated with the loan acquired for ‘Growth Capital’, which is strategic investment for long term value.
For the third quarter, net profit was slightly down to $43 million coming from $49 million for the corresponding period in 2020, despite the quarterly deduction of the finance cost to serve the $805 million bond floated by the company.
Earnings per share (EPS) for the nine-month period was $0.08 cents per share compared to $0.12 cents in the prior period 2020 and for the third quarter EPS was $0.01 compared to $0.02 last year. Total assets at the end of the three quarters stood at $1.7 billion up from $1.3 billion in the comparative period 2020, reflecting an increase 33 per cent.
Shareholders’ equity was $746 million compared to $739 million in the prior period 2020 and total liabilities increased to $984 million from $564 million.
Growing Indies Pharma
The $805 million bond attained in 2020 towards ‘Growth Capital’ still remain on the books as the company continues to grow through the development and approval of two new drugs at the US Federal Drug Administration for the American market. The management of Indies Pharma says it “continues to maintain a steady performance and remains healthy and consistent in these challenging and trying times and continues to execute on its strategy through strengthening its intellectual property (new drug approvals for the US market), tangible assets (prime real estate) and relations with customers, shareholders, and its employees.