FE REPORT
Navana Pharmaceuticals PLC has unveiled plans to set up a new herbal division at its existing manufacturing site with an investment of Tk 208.5 million.
The decision, approved by the company's board of directors on Wednesday, was disclosed in a filing to the Dhaka Stock Exchange on Thursday.
Total footprint area of the herbal division will be approximately 10,000 square feet. The new division is expected to be completed within the next five years and generate approximately Tk 400 million in additional revenue during its first year of operation.
The drug manufacturer will finance the investment through a combination of its own funds and external sources. However, the company did not give details on the specific allocation of these sources. The project is subject to regulatory approval.
Following the news, the company's stock price went up 2.21 per cent to close at Tk 46.2 on Thursday on the Dhaka Stock Exchange.
FINANCIAL PERFORMANCE
Navana Pharma posted an impressive 20.5 per cent year-on-year growth in sales to Tk 8.03 billion in FY24 while net profit surged 13 per cent to Tk 404.63 million.
Based on the profit growth, the board declared 14 per cent cash dividend for FY24, only for general investors.
The drug maker also posted a 20 per cent year-on-year growth in profit for the first quarter of FY25 for July-September 2024, riding on higher sales revenue.
The drug maker reported a profit of nearly Tk 134 million in the September quarter (Q1) of FY25 as against Tk 112 million in the same quarter a year before.
Its net sales jumped to Tk 2.14 billion in July-September quarter, up 31 per cent from Tk 1.63 billion in the same quarter a year before.
On Thursday, the company also announced a board meeting scheduled for January 29. The meeting will consider, among others, un-audited financial statements for the second quarter (Q2) of FY25.
IPO PROCEEDS UTILISATION PLAN REVISED
Navana Pharmaceuticals, which went public in 2022 by raising Tk 750 million through the book-building method, has revised its plan for the use of the IPO proceeds.
The company initially allocated Tk 131.2 million for the modernisation and expansion of its SVPO Facility, but has now redirected these funds to construct a five-story, fully GMP-compliant generic production unit.
At its EGM, the company has approved extension of the time for full utilisation of IPO proceeds within 36 months until October 2025.
However, the company has already utilisaed 86.46 per cent of Tk 750 million IPO funds as of October 2024.
The new generic production unit will enhance the company's existing annual production capacity by around 1000 million units per year, the company said earlier.
Incorporated in 1986, Navana Pharma is engaged in manufacturing, marketing and distribution of generic pharmaceuticals products.
Currently, the company produces both human and animal drugs. The products are sold in domestic and international markets.
The human health division produces tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams, ointments, etc.
On the other hand, the veterinary division manufactures and markets high-quality medicines and feed supplements for different segments including poultry, dairy, and aqua products.
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