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                          PRESS RELEASE


 

  

Renata Limited declared cash dividend of 50 percent and stock dividend of 20 percent (Bonus Share 1:5) for the year 2007. The dividend was approved at its 35th   Annual General Meeting, held on 31st May, 2008.

Mr. S.H. Kabir, Chairman of the Board presided over the meeting.

The meeting was also attended by the Company’s CEO and Managing Director Syed S. Kaiser Kabir, Directors Dr. Sarwar Ali, Sajida Humayun Kabir, Md. Ziaul Haque Khondker, A. Hasant Khan, Mr. Manzoor Hasan, Company Secretary Md. Shafiul Alam, senior executives of the company and a large number of shareholders.

The meeting was informed that in the year 2007 Pharma industry witnessed a disinformation campaign about high drug prices and poor quality of medicines which forced the industry to shift its focus from exploring and building for long-term growth to merely fighting for survival. Not since 1982 had the Industry witnessed such a crisis of confidence.

In 2007, Renata’s combined turnover and net profit grew by 31.5% and 38.7%, respectively. Earning Per Share (EPS) stood at Tk.348.5 compared to Tk.251.2 in the year 2006. Renata also contributed Tk. 524 million to the national exchequer in the form of Corporate Taxes, Value Added Tax and Import Duties. The retained earnings of the company stand at a healthy Tk.911.3 million against zero long-term debt.

In the Pharmaceutical business Renata’s market rank improved from 8th to 7th in 2007, and its Sales grew by 35.9%. In the Animal Health business segment Renata continues to hold on to market leadership, registering 23.3% sales growth. This success, in an unfavourable business climate was largely achieved by making inroads into the market shares of the competitors through very aggressive sales and marketing.

Mr. Kabir informed the meeting that Renata’s Potent Product Facility was accredited by the Medicines and Healthcare products Regulatory Agency (MHRA) of the UK, the first Potent facility in Bangladesh to receive such recognition.

Renata’s new Cephalosporin Facility,  on the Rajendrapur site is currently at the commissioning and validation stage. Commercial production is expected to begin in the third quarter of 2008. Also on the Rajendrapur site, commissioning of a new penicillin facility is expected by Q1 2009.

On Renata’s export pursuit Mr. Kabir said “By the end of 2008 we expect to operate in four ASEAN countries. We are also hopeful that the appointment of additional partners in Srilanka and Vietnam shall provide a boost to existing exports. Finally, the UK business is poised to begin shortly”.

On the outlook for 2007 he informed that due to the rising trend in raw material costs and lack of new drugs is affecting the generic industry. As companies are compelled to look for growth from existing product portfolios, price competition is becoming fierce in turn lowering shareholder returns.

 

Mr.  S.H. Kabir (Fifth  from  left)  Chairman  of Renata  Limited addressing the 34th  Annual General  Meeting of  the Company. Seating  from left  are  Mr.  Md. Shafiul Alam, Company Secretary, Mr. Manzoor Hasan Director,Dr. Sarwar Ali Director, Mr. Syed S. Kaiser Kabir, CEO & Managing Director, and Directors Mr. Z.H. Khondker, Mrs. Sajida Humayun Kabir and Mr. A. Hasnat Khan.