IBN SINA Pharma recommends highest cash dividends in 12 years

The IBN SINA Pharmaceutical Industry—an enterprise of IBN SINA Trust has recommended a 47% cash dividend for the 2020-21 fiscal as it maintained an upward trend in business.

The cash dividend is the highest in the past twelve years of the company since 2009.

On Wednesday, the company published the financial information for FY21 as price-sensitive information on the stock exchanges.

Earlier, in the 2019-20 fiscal, the IBN SINA Pharmaceuticals—a manufacturer of drugs – had paid 38.5% cash dividends.

In the 2015-16 fiscal, it had paid a 52.5% dividend; of which 37.5% cash and 15% stock dividend.

As per the disclosure, in FY21, the profit of the company increased 24% over the previous year.

The consolidated earnings per share (EPS) stood at Tk15.66, which was Tk12.56 in 2019-2020.

Md Kabir Hossain, company secretary of the company, told The Business Standard, "During the fiscal year, the company has maintained an upward trend in business. As a result, revenue and profit increased."

"As our profit rose over the previous year, the board of directors has recommended much more dividend than the previous year," he added.

As per the disclosure, the company will buy a 16.75-decimal land in Narayanganj to build a sales depot at a cost of Tk1.50 crore excluding registration fee and other relevant charges.

On the other hand, it also decided to sell out its 40% investment shares equivalent to Tk6 crore to exit the consumer project as the company deems it not feasible and viable at present.

In April 2017, the company had decided to increase sponsors' stake in the IBN SINA Consumer Products Ltd.

IBN SINA Pharmaceuticals' financials

According to its financials, in FY21, its net profit stood at Tk48.92cr, which is 24% higher than the previous year.

Its net profit was Tk39.25 crore and it had paid 38.5% cash dividends for FY20.

The annual general meeting (AGM) will be held on 18 November through the digital platform. The record date of the company is fixed on 18 October.

The IBN SINA Pharmaceuticals Industry was founded in 1983. It got listed on the Dhaka Stock Exchange (DSE) in 1989.

The company produces drugs including herbal and Unani medicines. Its manufacturing facilities are located in Gazipur.

It has two manufacturing plants – one pharmaceutical and the other natural medicine – both having state of the art technology.

In 2019-20, its sales were worth Tk619.16 crore, which was 17.62% higher compared to the previous year.

In the first nine months of 2020-21, its sales were worth Tk539.93 crore, a 17.24% growth compared to the same time of the previous year.

The net profit stood at Tk34.14 crore in the July-March period, which was Tk30.07 crore at the same time as the previous year.