The
Company officials attributed the loss to additional impairment allowance, drop in gross margins and increase in interest on overdraft.
According to the financial results released on June12, the company's impairment allowance on the financial assets increased by Shs3bn to Shs 32billion due to delayed payment for drugs supplied to the Zambian government.
"The board, with the help of the Government of
Bradford told The Independent in an interview on
He said that the company remains healthy, strong and on a firm ground to continue manufacturing and supplying drugs to
"Furthermore, management is also exploring other avenues to recover these funds... any reduction in outstanding balances from GOZ will result in a reversal of the impairment allowance to that extent."
The company's gross profit reduced from Shs53.48bn to Shs 36.94bn during the same period under review due to change in product mix in the new orders received after suspension of sales to
However, local drug sales increased by 18% in FY2019-20 due to increased orders from international health organisations for delivery within the country. Similarly, cash flows from operations increased from a deficit of Shs49bn to Shs23billion as a result of improved collections.
Officials said that payments to suppliers increased due to increased purchases of stock in the previous year to manage risks associated with dependence on imports from
This development comes when the company's share price on the Uganda Securities Exchange is trading at Shs 101 down from Shs 256.5 per share during the IPO period two years ago.
This year,
The drug company also received a renewal of its World Health Organization Good Manufacturing Practices (
In addition, the company received GMP approval from Zazibona (the grouping of nine Southern African countries) and SAPHRA, the South African regulatory body. This was followed up with SAPHRA's step to approve the
Similarly, forty-five regulatory filings were made during the year in the fifteen countries of the
It started operations in 2005 as a joint venture between
Since then, the firm has initiated multiple capacity expansion programs and portfolio expansions, including the launch of new therapies.
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