Gland Pharma reports nearly 50% jump in Q1 profit
Hyderabad-based Gland Pharma has posted a nearly 50 percent surge in first-quarter profit, driven by improved margins and a recovery at its European unit Cenexi.
The company reported a consolidated net profit of Rs 2.15 billion (approximately $24.5 million) for the quarter ended June 30, up from Rs 1.44 billion in the same period last year.
Revenue from operations rose 7.4% to 15.06 billion rupees. While sales from its U.S. business, which accounts for nearly half of the total, fell 2%, its Europe business posted a 29% rise.
Gland and several Indian pharma companies that make generic drugs derive a significant share of revenue from the United States and has continued to face pricing pressure in that market following U.S. President Donald Trump's imposition of hefty tariffs on goods imported from India, Reuters reported.
However, Gland Pharma said improved margins and Cenexi's earnings before interest, taxes, depreciation, and amortisation (EBITDA) break-even supported quarterly performance, marking a turnaround after production setbacks at its Paris and Belgium units weighed on earnings over the past year.
The company’s EBITDA margin rose to 35% in the June quarter from 29% a year earlier.
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