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Download Half Yearly Report 2005
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The external environment was extremely
difficult during the first six months. A free-falling Taka raised the
cost of imported raw materials, while fierce competition in the
product market precluded the possibility of cutting back on selling
expenses. Nevertheless, the company emerged relatively unscathed with
turnover and net profit growth of 19% and 35% respectively. |
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Md. Shafiul Alam
General Manager, Finance
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Cash flow
from operating activities increased due to higher collection from
sales and decline in inventories, debtors, advances, deposits and
prepayments. A sizeable proportion of the increased cash-flow has been
used up for acquisition of fixed assets. The net cash amount, after
investment in fixed assets added to cash was Taka 36.0 million.
Barring any major surprises, the company remains on target to deliver
net profit growth between 20%-25%.
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Md. Halimusshan
General Manager,
Pharmaceutical, Marketing
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The first half performance for the pharmaceutical
business was encouraging. Our strategy of improving sales team
productivity and building brands in key therapeutic areas is bringing
good results. Knowledge-based activities along with relationship
marketing are instrumental have been especially emphasised. Our
customer-focused campaigns put us ahead of our competitors in terms of
prescription. As a result, during this period Renata grew faster than
the market and improved its market share.
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Dr. Manzur
Aziz
General
Manager,
Animal Health
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Renata Animal Health business secured
respectable growth in the 1st half of 2005. Although the
large animal market remained stagnant, recovery of the poultry
industry has fuelled market growth for animal health products. We
continued to maintain very close contact with our customers through
extension programmes. Such activities have placed us in an
advantageous position with respect to our main competitors. We remain
confident of achieving our annual target.
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M. Alamgir
Hossain
General
Manager, Operations
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Cost-effective procurement has been
very challenging during the first six months. The Taka depreciated by
12% against all major international currencies compared to 2004. In
addition, supplies of key API from China have been erratic and
expensive. It is therefore unlikely that we shall be able to reproduce
the cost-savings witnessed during the last three years.
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