Cipla Quality Chemicals registered a 59.7 per cent growth in generated revenue for the half-year ended September 30.
The drugmaker, which has seen increased activity in the export market during the period between April and September, reported a growth in revenue from Shs76.7b in the same period in the previous financial year to Shs122.6b.
This, the company said, was mainly generated from drug exports, especially to Botswana and Kenya, among others.
Cipla generates at least more than 50 per cent of its revenues from exports to 13 countries in Africa and Asia.
Speaking during the release of the company’s financial results in Kampala yesterday, Mr Nevin Bradford, the Cipla chief executive officer, said the company had endured Covid-19 related challenges to maintain normal operations, which saw production close at 90 per cent.
“This was a challenging period, not only for us but the entire country and the world at large. However, despite the challenges, we maintained production at 90 per cent and we were able to supply lifesaving drugs to millions of people,” he said.
For instance, he said, the company had during the period made deliveries to Botswana, which had been threatened by stock out.
During the period, sales grew by 34.9 per cent from Shs76.7b to Shs103.5b due to new customers in the export segment while lower margin contract manufacturing and raw material sales rose to Shs19.1b.
General and administrative expenses increased by 16.9 per cent to Shs20.6b due to additional costs to manage staff safety risks associated with Covid-19.
However, the impact of additional costs was partially offset by savings on international travels.
Cost of sales grew to Shs112.1b compared to Shs61.3b in the period. During the period, the company registered a Shs21.2b loss compared to Shs15.3b in 2019.
The loss, Mr Bradford said, had been occasioned by a long time debt due to the Zambian government.
The company, he said, had provisioned for the $2.6m debt, noting efforts to recover the money within the period had been unsuccessful.
However, Mr Bradford said, the company had been in close contact with the Zambian government, especially the country’s finance minister, noting they were confident that the money would be recovered soon.
During the period Cipla’s assets grew to Shs251.2b compared to Shs248.4b in 2019.