Outgoing CEO Mr Nevin Bradford welcomes new CEO Mr Ajay Kumar Pal (R)
The last two years have presented serious business, health and personal challenges across the world, worsened by a breakdown in the global supply chains due to COVID-19 related disruptions. It has been a period that has tested both business resilience as well as threatening to overwhelm healthcare systems in a number of countries, including Uganda.
However, notwithstanding the challenges, during the period between April 2020 and March 2021, CiplaQCIL noted highlights including revenue growth, additional employee safety and insurance measures, increased production capacity at the plant (from 892 to 1008 million tablets), the launch of new product lines and widening of the export portfolio.
CiplaQCIL also secured a number of product registrations in West Africa (WAHO) and Southern Africa (ZAZIBONA), which increased the regulatory footprint from 16 to 31 countries across Africa. The expansion of both product lines and geographical footprint resulted in increased sales volumes and revenue growth during the past financial year. Some of the financial highlights include revenue growth of 48% year-on-year, net margin improvement of 8% year-on-year and cash flow improved by more than 20%.
In total exports were over 400% higher than FY 2019-20; a clear demonstration of the Company’s success in monetising the opportunities resulting from COVID-19. During the year the Company made its first export sales to Nigeria, Sierra Leone, Niger, Botswana and Malawi. During the year, the Company also delivered on its long-standing commitment to enter the Ugandan retail pharmaceutical market by acquiring the importation and distribution business of the Cipla range of products manufactured in India.
“The growth has been due to an aggressive geographical expansion drive. We increased the registration of company products to more than 14 countries, bringing the number of country registration to 31.
Amid the ongoing COVID-19 pandemic, CiplaQCIL has implemented various safety precaution measures such as a vaccine drive, PPE and transport to and from work, for its most valuable asset, its staff.
“We have also implemented cost-efficient initiatives such as replacing expensive short-term capital expenditure with a long-term loan to manage interest and save costs,” added Bradford.
“The immediate priority of the business is to make it profitable in line with the focus on sustainable and profitable growth to achieve our short- and long-term goals. Another key aim is to improve business agility and we will strongly focus on ensuring a solid governance framework,” said Ajay Kumar, incoming CEO of CiplaQCIL. We will expand out portfolio and invest in new therapeutic areas such as oncology and continue to focus on efficiencies in business.
“We are optimistic that the company will turn around. Our focus is to ensure that the business meets the needs of its various stakeholders particularly our customers and shareholders. We are confident that with the commitment to our strategy, mission, and vision our performance in future years will be much better,” concluded Emmanuel Katongole, Chairman of CiplaQCIL.
Great achievement.