Square Pharmaceuticals, a leader in Bangladesh’s pharmaceutical sector, has reported its first-ever revenue decline since its inception. Despite this historic drop, the company managed to achieve a modest profit increase of 1.54%, thanks to income from investments and associate companies.
For the July-September quarter of 2024, Square Pharmaceuticals reported revenue of Tk1,774 crore, slightly lower than the Tk1,781 crore recorded in the same period last year. This minor dip marks a significant moment in the company’s journey as it breaks its long-standing streak of consistent revenue growth.
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According to a TBS article Zahangir Alam, the Chief Financial Officer of Square Pharmaceuticals, confirmed the decline and attributed it to several challenges. He also stated that this is the first time they experienced a decline in revenue. Alam cited factors such as the July-August political turmoil, ongoing labour unrest, and unprecedented flooding as key contributors to the downturn.
The company’s operating profit also reportedly took a hit, declining by approximately 13% to Tk556 crore during the quarter. However, earnings per share (EPS) for the period remained relatively stable at Tk6.87.
Despite the setbacks in core operations, Square Pharmaceuticals leveraged its investments and associate companies’ income to boost its overall profit. The company posted a net profit of Tk609 crore, up from the previous year, reflecting its robust diversification strategy.
Founded in 1958 as a private company, Square Pharmaceuticals has been a pioneer in Bangladesh’s pharmaceutical industry. It went public in 1991 and is now listed on both the Dhaka and Chittagong Stock Exchanges. The company exports medicines to numerous countries worldwide, showcasing its global footprint.
While the recent revenue decline signals a challenging period, Square Pharmaceuticals’ ability to maintain profitability underlines its resilience and strategic adaptability. Industry observers will closely monitor how the company navigates these hurdles in the coming quarters.
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