Karachi: BF Biosciences Limited (BFBIO) has reported a significant 102% increase in net sales for the fiscal year ending June 30, 2024, according to its annual audited financial statements. The company's net revenue rose to Rs. 3.66 billion, up from Rs. 1.81 billion in the previous fiscal year, driven largely by an increase in sales volume across its product lines.
The company's financial performance highlights a substantial growth in key areas. Gross profit surged to Rs. 1.53 billion, from Rs. 449.53 million in the prior year, while profit before tax increased to Rs. 575.61 million, up from Rs. 182.51 million. The profit after tax also saw a notable rise, reaching Rs. 385.41 million compared to Rs. 149.05 million last year. This growth translated into earnings per share of Rs. 6.09 for FY 2024, compared to Rs. 2.35 in FY 2023.
According to information available from the Pakistan Stock Exchange (PSX), BFBIO's gross profit margin improved to 42% from 25%, attributed to a change in sales mix and increased sales volumes that reduced overhead costs per unit. The company invested heavily in its field force and marketing activities, resulting in a 423% rise in selling and distribution expenses to support its topline growth and product launches.
Despite the financial successes, the Board of Directors has not recommended a dividend for the year ended June 30, 2024, citing the ongoing major expansion project. The company's administrative expenses increased by 74%, largely due to a fee payment related to an increase in authorized share capital.
No significant changes affecting BFBIO's financial position occurred between the statement of financial position date and the date of the report, except for the completion of its Initial Public Offering (IPO) on September 25-26 and October 2-3, 2024. The IPO funds will be used for capital expenditure, securing export certifications, and managing working capital needs, with trading set to commence after a gong ceremony on October 21, 2024.
In terms of expansion, BFBIO has commenced commercial production of its pre-filled syringes line, obtained necessary approvals from the Drug Regulatory Authority of Pakistan (DRAP) for its new production lines, and expects commercial production to begin by the end of October or mid-November 2024.
The company also announced that its parent company, Ferozsons Laboratories Limited, has entered a non-exclusive voluntary license agreement with Gilead Sciences Ireland UC to manufacture and sell generic lenacapavir in select countries. This agreement allows BFBIO to contribute to the global effort to combat HIV by producing the injectable drug product at its facility.
BF Biosciences Limited acknowledges the efforts of its employees and expresses gratitude to its business partners and customers for their ongoing support and confidence.