Renata’s profit jumps 64% as finance costs fall

Renata PLC, a listed pharmaceutical company, staged a profit turnaround in fiscal year 2025-26 (FY26), with annual profit rising 64 percent and revenue growing at a more modest pace.

The company’s revenue increased 7.7 percent year-on-year to Tk 4,620 crore, while its profit rose to Tk 364 crore, recovering from a 44 percent decline in FY25 when high finance costs linked to investments in a new plant weighed on earnings.

The improvement came mainly from higher sales volumes, particularly in the domestic pharmaceutical market, better procurement, improved operational efficiency and lower finance costs following capital restructuring.

Based on its earnings, the company’s board of directors declared a 55 percent cash dividend for shareholders, unchanged from the previous fiscal year.

Despite challenging domestic and global economic conditions and pricing constraints, Renata’s profit surged on the back of effective cost management, a focus on high-margin products and measures to manage financial risks, said Jubayer Alam, company secretary.

Revenue from local pharmaceutical products, which accounted for more than 70 percent of the company’s total revenue, grew 11.6 percent during the fiscal year. Its export, consumer and agro businesses also posted steady growth.

However, revenue from animal health products remained almost unchanged from a year earlier, while revenue from contract manufacturing fell by around 12 percent, according to company data.

Net finance costs dropped 22.4 percent in FY26, helping boost the company’s bottom line.

The decline was largely driven by capital restructuring, including a shift from short-term borrowing to lower-cost long-term funding. The efforts were supported by a loan facility from the International Finance Corporation (IFC) and the issuance of Tk 325 crore in convertible preference shares, Jubayer said.

Renata is also working to expand its global presence, backed by a portfolio of 100 bioequivalent products. The company currently exports to 70 countries across different continents.

Commenting on the impact of the conflict in the Middle East, Jubayer said escalating geopolitical tensions posed significant risks to the costs of raw materials, energy and freight.

Renata has not been materially affected by the conflict so far, but some risks have emerged that could hurt its performance in the future if left unaddressed, he said.

Some raw material suppliers have indicated price increases, while shipping costs have risen since the conflict began, he added.

Renata’s consolidated earnings per share rose 64 percent to Tk 31.76 in FY26 from Tk 19.36 a year earlier.

Net operating cash flow per share increased to Tk 49.88 from Tk 41.16, mainly due to higher operating profit.

The company’s net asset value per share grew 7.8 percent to Tk 329.19 as of June 30, 2026, from Tk 305.49 a year earlier.

On Thursday, Renata shares traded at Tk 448, slightly below the previous day’s closing price.