Financial Statement Analysis of

Beximco Pharma

Submitted To
Dr. H.M.Mosharof Hossain

Submitted By:

Name Id
Md.Sayed Hossain 151-2669-660
Sohidul Hoque 152-1471-660
Debashish Dey 151-2810-660
Saimun Uddin Chowdhury 153-1130-660
Ahmed Inam 121-0826-060

Date of Submission: 05th December, 2016

Table of content:
Topic Topic Name Page Number
No:

1. Introduction 1

2. Purpose of the study 1

3. Objective of the study 2

4. Company Overview 2-3

5. Methodology 3

6. Liquidity Ratio 3-5

7. Asset Turnover Ratio 5-11

8. Debt Management Ratio 12-15

9. Profitability Ratio 15-22

10. Market Value Ratio 22-29

11. Conclusion 30
Executive Summary:

Beximco Pharmaceuticals Limited (BPL) is one of the leading pharmaceutical manufacturing

companies in Bangladesh. Considered as a technological leader among the local manufacturers,
BPL currently holds the third position in local sales among all pharmaceutical companies in
Bangladesh. The company has established an extensive distribution network that supports some
of the best-selling products in the local market. With a highly ambitious expansion program, BPL
has been able to eliminate some capacity bottlenecks, which have been holding off their growth
in the recent past. Moreover, the company has increased its focus on exports in recent times.
With its state of the art manufacturing plants and certifications from advanced market regulators,
BPL is already in an advanced stage of becoming one of the first truly export-oriented
pharmaceutical companies in the country.

Beximco has been able to maintain a decent margin throughout the last few years despite
fluctuations during some tough times between 2006-2008. With capacity constraints out of the
way, their margin could stabilize very quickly and continue for the foreseeable future. Increased
focus in the exports market could even lead to improvement in margins in the long run. In 2014,
Beximco Pharma reached net sales of BDT 4.87 billion posting a healthy growth of 21% and
outperforming the industry. The bottom line growth was 15% with a net profit of BDT 625
million. However, operating profit remained almost the same as previous years. This is mostly
due to the companys extra efforts to recover some of its market shares from rivals. The company
hit a bottleneck in capacity during the past couple of years. The rival companies took advantage
of this. Since the pharmaceutical industry in Bangladesh is fiercely competed by the top
companies, recovering lost market shares is not an easy task. However, BPL has apparently
overcome those problems in 2010 and this is expected to continue in the foreseeable future.