Beacon Pharma’s profit dips 45%

Beacon Pharmaceuticals PLC posted a 45 percent year-on-year decline in profit to around Tk 51 crore in the last financial year, suffered by increased cost of raw materials and inconsistent supply of gas.

The drug maker recorded Tk 93.5 crore in profit in the financial year 2021-22.

"We have had higher net sales in the last year. But our profit dropped as our import cost soared for the increased cost of US dollar in face of depreciation of taka," said Khalilur Rahman, company secretary of Beacon Pharmaceuticals.

"We also had to run diesel-run generators for the plant because of inconsistent supply of gas. All these factors drove up our costs," he added.

Beacon, which makes more than 200 generic drugs and 65 oncology products, recorded Tk 850 crore in net revenue in the financial year ending in June 2023. Its year-on-year revenue grew 6 percent, according to Rahman.

Beacon is yet another drug maker that announced falling earnings in the financial year 2022-23.

Beximco Pharmaceuticals early this week reported a nearly 10 percent fall in profit while earnings of another drug maker, Renata Ltd, slumped by more than half.

Only Square Pharmaceuticals, the biggest company in the sector, said its profit grew.

Beacon said its earnings per share plunged to Tk 2.21 in 2022-23 from Tk 4.05 the previous year.

The board of Beacon recommended 16 percent cash dividend for the year that ended on June 30, according to a filing on the Dhaka Stock Exchange (DSE).

Shares of the drug maker yesterday closed unchanged at Tk 245 on the DSE.