Square Pharmaceuticals has experienced a marginal year-on-year decline in revenue in July-September (Q1), FY25 as sales dropped amid political unrest and floods during the period.
The company's revenue fell 0.34 per cent year-on-year to Tk 17.75 billion in Q1, FY25.
Still, Square Pharma secured a 1.15 per cent year-on-year growth in the consolidated profit to Tk 6.09 billion in Q1 of FY25, driven by increased profits of associated companies.
Requesting anonymity, a senior official of the company said sales had remained suspended for five days in August following countrywide political unrests.
After the change in the political regime, floods in several districts, including Feni and Noakhali, disrupted the supply of drugs.
Square Pharma saw a marginal year-on-year rise in the cost of goods sold and finance costs in the first quarter through September.
Since the sales declined and collections were not up to the market in Q1, FY25, the company's cash flow turned negative.
Square Pharma reported a record profit of Tk 20.92 billion in FY24, riding on record sales. Buoyed by the profit, the company declared the highest-ever cash dividend -- 110 per cent -- for the fiscal year.
The company's expanded distribution network and higher sales volume boosted its revenue in the year.
In FY24, Square Pharma's revenue rose 12 per cent to Tk 70 billion, compared to the year before.
After the fall of Hasina's regime, investors showed enthusiasm in buying shares of the drug maker, driving the share price to Tk 236.4 each on August 8 on the prime bourse.
The stock had been through ups and downs since then and closed at Tk 224.90 per share on Thursday.
Earlier, the company's board of directors approved a proposal for BMRE (Balancing, Modernization, Rehabilitation, and Expansion) and the purchase of capital machinery and land for future expansion at an aggregate cost of Tk 5 billion.
Square Pharma has seen a surge in demand for its products in recent times. To meet this increasing demand and to introduce new products, the company has entered into contract manufacturing with other local firms, including Aristopharma, Euro Pharma, Renata Oncology, and Apex Pharma.
Though Square Pharma's business mainly focuses on the domestic market, it has gained a foothold in the export market too by supplying products to well-regulated markets, such as the US and EU nations.
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