Indies Pharma Jamaica Limited (INDIES) for the nine months ended July 31, 2023 reported a 8% increase in Revenue totaling $786.90 million compared to $727.63 million in the corresponding period last year. Revenue for the third quarter had a 13% increase to close at $299.74 million compared to $264.74 million for the comparable quarter of 2022.

Cost of Sales amounted to $232.36 million (2022: $210.26 million), this represents an increase of 11% year over year. Consequently, gross profit increased by 7% to $554.54 million compared to $517.37 million for the nine months ended July 31, 2022. The company booked gross profit of $215.45 million for the third quarter versus $181.84 million reported for the similar quarter of 2022. Management noted, “ One of the main contributing factors is the robust approach taken in monitoring inventory and mitigating the write off expired stock.”

Other operating income increased by 697% to close at $13.76 million (2022: $1.73 million), while Administrative and other expenses increased by 23% from $282.25 million in 2022 to $346.64 million in the period under review. As a result, profit from operation for the nine months ended July 31, 2023 amounted to $221.67 million, a 6% decrease relative to $236.84 million reported in 2022.

Exchange Gain for the nine months ended July 31, 2023, amounted to $907,609, a 122% decrease relative to a loss of $4.08 million reported in 2022. Exchange Gain for the third quarter amounted to $2.53 million (2022: Loss of $3.80 million). Finance cost-loan interest totalled $49.37 million a 10% increase from the corresponding period last year. (2022: $45.05 million).

Profit before taxation for the nine months ended July 31, 2023, amounted to $173.21 million, a 8% decrease relative to $187.71 million reported in 2022. Profit before taxation for the third quarter amounted to $84.29 million (2022: $72.76 million).

There was no taxation for the nine months ended July 31, 2023 (2022: nil) . Net Profit for the nine months amounted to $173.21 million, a 8% decrease from the $187.71 million reported in 2022. For the third quarter, Net Profit for the period was $84.29 million (2022: $72.76 million).

Consequently, Earnings Per Share for the nine months amounted to $0.13 (2022: EPS: $0.14), while Earnings Per Share for the quarter totaled $0.06 (2022: EPS: $0.05). The twelve month trailing EPS was $0.15 and the number of shares used in these calculations was 1,332,536,649.

Notably, INDIES’s stock price closed the trading period on September 13, 2023 at a price of $3.00 with a corresponding P/E ratio of 19.38x

Indies stated  “ The $805 million bond attained in 2020 towards “Growth Capital” continues to remain on the books as we continue to grow the company through the organic development and approval of two new drugs at the USFDA for the United States Market. As stated in our 2nd Quarter JSE filing, we successfully submitted our very first ANDA – Abbreviated New Drug Application (generic drug dossier) on the 25 January 2023 at the USFDA. The same was accepted by the USFDA without any rejections or queries on the 24th of February 2023 with a gold date of approval as November 2023. Queries from the USFDA during this third quarter were uneventful and were effectively addressed and filed by us.”

Balance Sheet Highlights

As at July 31, 2023, the Company’s total asset base amounted to $2.164 billion (2022: $2.165 billion). The decrease was mainly due to a 29% decline in ‘Right of use asset’ to $91.83 million (2021: $129.73 million)

Shareholder’s equity was $1.18 billion (2022: $1.14 billion), representing a book value per share of $0.89 (2022: $0.86).

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