Dabur’s fundamental analysis / strengthening profitability by increasing product prices – Tejaratnews

According to Tejarat News, Aburihan Pharmaceutical Company was registered in Tehran Companies and Industrial Property Registration Department with the original name of Berlimed Iran Joint Stock Company in late March of 1343. It should be noted that the main subject of the company’s activity includes the production, preparation and import of human and animal medicines, pharmaceutical supplements, equipment and cosmetics.

It should be noted that the shares of this pharmaceutical company were offered in Tehran Stock Exchange for the first time in April 2010 at a price of 1,290 Tomans.

At the time of the initial launch, the capital of Aburihan Pharmaceuticals was 750 million tomans, which after several stages of capital increase has reached 179 billion tomans. The last increase of the company’s capital is related to October last year, by which the company’s capital increased by 100%.

It should be noted that the shares of Aburihan Pharmaceutical Company with a market value of 3,772 billion Tomans are traded under the symbol Dabur in the group of pharmaceutical materials and products.

According to the interpretive report of Dabur management, the company intends to renovate and renovate production lines and improve old and worn out parts to increase efficiency and improve its profitability. On this basis, a positive perspective can be considered for increasing the profitability of 1402 companies.

Increase in Dabur’s net profit in 9 months of 1401

A look at the latest published financial statements of Aburihan Pharmaceutical Company indicates that this pharmaceutical company was able to earn one thousand and 70 billion Tomans from the sale of its products in the 9 months ending in December 1401.

This number has grown by about 35% compared to the sales of 794 billion tomans in 9 months of 1400. In contrast to this 35% increase in the company’s sales, the production cost of Aburihan Pharmaceuticals increased by 29%. So that this company spent about 505 billion tomans to produce its products.

This higher growth of the company’s income compared to its production cost has increased the operating profit and net profit of the company by 39 and 40 percent.

Based on this, the operating profit of the company in 9 months of 1401 has reached 524 billion tomans from 376 billion tomans in the same period of 1400.

Also, this company managed to recognize more than 330 billion Tomans in net profit in the 9 months ending in December 1401.

It should be mentioned that this number was recorded at about 235 billion tomans in the same period of 1400.

Decrease in production and sales of Dabur in March 1401

The monthly performance report of Aburihan Pharmaceutical Company in March 1401 shows that the company’s production and sales in this month have decreased by 19.3% compared to the month of February this year.

Based on this, the company’s production in March 1401 has reached 91 thousand 681 (thousands) from 113 thousand 250 (thousands) in February 1401.

The sales amount of the company has reached from 100,653 (thousands) in February to 97,806 (thousands) in March 1401.

It should be mentioned that Aburihan Pharmaceutical managed to export 6,158,000 of its products in March 1401.

Of course, it is important to mention that this pharmacy earned more than 149 billion Tomans from the sale of its products in March 1401, which has grown by 135% compared to the same period of 1400.

Increasing drug prices is the only way to prevent pharmaceutical manufacturers from losing money?

The most important event of the pharmaceutical group last year was the increase in the preferred exchange rate of pharmacists from 4,200 tomans to 28,500 tomans. An increase of more than 6 times, which made the drug production and supply chain face great problems.

The biggest consequence of this increase in the exchange rate is the big jump in the cost of drug production for pharmaceutical manufacturers. Following this increase in cost and decrease in liquidity to supply foreign raw materials, pharmaceutical companies are seriously looking to increase the price of their products.

Of course, before this, the Minister of Health had admitted that pharmacists do not have the right to increase the price of their products, however, in the last months of 1401, the discussion of a 20% increase in the price of medicine was raised again.

It should be noted that the shortage of antibiotics in the fall of 1401 was also one of the reasons for this increase in the preferential exchange rate. Because the pricing made by the government reduced the profitability of the pharmacists, and they could not supply the raw material for the production of antibiotics, and finally the Iranian market faced a serious problem of antibiotic shortage.

Inflation is another pressure lever to charge the price of raw materials that pharmaceutical companies supply from the domestic market.

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