Navana becomes top gainer after posting 54pc profit growth

Navana Pharmaceuticals posted an impressive 54 per cent year-on-year profit growth in January-March 2023, riding on higher sales revenue.
The drug maker reported a profit of Tk 105 million in the three months through March, according to its un-audited financial statements published on Sunday.
During the quarter, the company's sales revenue increased 23 per cent year-on-year to Tk 1.50 billion.
Following the disclosure of the profit and sales growth, the stock price soared 9.94 per cent to Tk 73 as investors rushed to buy shares hoping for quick profits.
It became the top gainer on the Dhaka Stock Exchange (DSE) on Sunday.
Investors were keen on putting their money in Navana Pharma with an expectation of good returns against the backdrop of an excellent growth of the pharma sector in recent years, said a stockbroker.
The sector has grown steadily in the last few years, having launched new drugs and adopted stronger marketing strategies.
Navana Pharma's nine months' revenue rose 16 per cent year-on-year to Tk 4.23 billion until March of FY23 while net profit jumped almost 30 per cent to Tk 249 million during the period.
During the nine months period, its costs of production also increased by 15 per cent to Tk 2.34 billion.
Company secretary Jounul Abedin said net profit was up as the sales of their branded products increased.
He said the company emphasized on increasing the production of high-end drugs, which helped boost sales in the human health division by 60 per cent in the nine months through March.
Besides, because of its stock market listing, the company got tax benefit, said Mr Abedin.
Presently, the listed companies that offloaded more than 10 per cent of their outstanding shares are paying 20 per cent corporate tax while non-listed companies have to pay 27.50 per cent tax.
Navana Pharma was incorporated in 1986, and got listed in October last year. It produces both human and animal drugs.
The veterinary division of the company manufactures and markets more than 123 high-quality medicines and feed supplements for different segments, including poultry, dairy, and aqua products.
On the other hand, the human health division produces more than 277 drugs - tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams, ointments, etc.
Navana Pharma sells these products in the domestic and international markets. It exports products to 15 countries.
The pharma sector, which meets 97 per cent of the domestic demands, witnessed a 12.1 per cent compound annual growth over the last five years. The medicine market size is around Tk 300 billion, according to UCB Asset Management.

[email protected]