Profit surged at Indies Pharma

Revenues surged at the pharmaceutical Junior Market listed Indies Pharma by 30 percent for the April quarter driving profits to more than double in the quarter and helping the half year results to rise a solid 66 percent after tax, above the same period in 2023.
Sales of $301 million were generated in the second quarter, were up 30 percent from $231 million in the prior year and jumped 17 percent to $571 million for the half year from $487 million in the same period last year.
Net profit grew a robust 147 percent to $70 million from $28.4 million in 2023 for the second quarter while growing a strong 66 percent for the six months from $88 million in 2023 to $134 million after tax of $18 million.
Gross profit for the quarter increased 27.3 percent slightly slower than sales to $208 million from $163 million in the prior year and $398 million for the half year, up 17.4 percent marginally higher than the increase in sales, moving from $339 million in 2023.
Administrative and other Expenses were steady in the second quarter at $119 million up slightly from $118.7 million in 2023 but rose 13.8 percent to $247.5 million from $217.4 million in 2023 for the six months. Finance Cost declined from $16 million in the April quarter to $14 million and $28 million for the half year from $33 million in 2023.
The operations generated $185 million in cash inflows that funded working capital needs. Capital spending utilised $17 million of the $252 million of cash on hand at the start of the year.
Current assets stood at $830 million at the end of April and Current liabilities at just $112 million. Inventories jumped sharply from a year ago to $315 million from $164 million and are up from $250 million at the end of the first quarter.
Inventories represent 3.4 months of the cost of sales, suggesting that there are adequate supplies to fuel continued high levels of sales. Cash and bank balances ended at $235 million, down from $350 million in 2023. Shareholders’ Equity amounts to $1.35 billion and long term liabilities at $835 million.
The profit performance resulted in earnings of 5.3 cents per share for the quarter and 10 cents for the half year.com projects earnings for the current year ending October at 19 cents per share. The stock traded on the Junior Market at $2.50 on Friday with a PE ratio of 13.2, with a slight premium to the market average of 12.