Indies Pharma Profit Falls In 2018 Due To Rising Expenses
- For the year ended October 31, 2018, Indies Pharma reported a net profit of $119.7Mn (EPS: $0.9), which represents a 15% decline from the $140.2Mn (EPS: $0.12) reported in 2017.
- The contraction in profit occurred despite revenues increasing 3%, from $620.3Mn in 2017 to $636.1Mn in 2018.
- The outcome can be attributed to a 17% increase in direct expenses, which moved from $208.7Mn in 2017 to $243.3Mn in 2018.
- The stock has grown by 119% (from $1.50 to $3.28) since it listed last August and currently trades at P/E of 37x earnings, which is above the junior marker average of 27x.
(Source: JSE, INDIES Financials)