Inflation And Local Currency Depreciation Drag Down Beximco’s Bottom Line

Soaring Expenses Have Taken Their Toll On Leading Bangladeshi Pharmaceutical Firm

Rising inflation and the depreciation of the Bangladeshi taka have taken their toll on Beximco’s profits even as revenue has continued to rise at the firm.

Businessman walking up ascending green graph while descending green graph hovers in background
Macroeconomic factors continue to hinder Beximco's bottom-line performance • Source: Shutterstock

A significant increase in expenses left a dent in Beximco’s net profits as it closed its 2023 financial year, despite strong revenue growth, following a significant depreciation of domestic currency and high inflation impact on profits. Its results for the first quarter of 2024, posted six days later, told a similar story, as a gross margin squeeze and debt costs saw net profits increase year on year but fall short of street estimates.

For FY2023, net sales increased 13.3% to BDT39.2bn ($354.6m), but profit after tax decreased 9.5% to BDT4.52bn. As well as...

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