Increased Product Sales Drives Indies Pharma Profits

  • For the nine months ending July 31, 2022, Indies Pharma reported a net profit of $187.71Mn which represents an increase of 81.2% relative to the corresponding period last year.  This surge in profits was mostly attributed to an increase in product sales as revenues increased by 14.9% or $94.34Mn.
  • In addition to product sales, the company was able to contain its direct expenses as its cost of sales decreased by 9.8%, which led to a material increase in its gross profit margin moving from 63% in July 2021 to 71% in July 2022. Management has highlighted that one of the main contributing factors to a decrease in its direct expenses was the robust approach taken in monitoring the inventory and supply chains.
  • The strong growth experienced for much of Indies’ financial year is expected to carry throughout the company’s final quarter. Already the company would have surpassed its 2021 Financial year net profit figure and as such its 4th quarter is expected to boost its earnings further.
  • Indies Pharma’s stock price has decreased by 7.3% since the start of the calendar year. The stock closed Tuesday’s trading session at $3.08 and currently trades at a P/E of 16.2x which is below the Junior Market Distribution Sector Average of 18.4x.

(Source: JSE)