Beaufond Plc Q3 Results for 2019-20

June 29, 2020 at 04:42 AM EDT

Dubai, Jun 29, 2020 (Issuewire.com) - "Beaufond believes that there are no secrets to success. It is the result of preparation, hard work, and seems to be connected with action. The secret of success is to do the common thing uncommonly well."

Beaufond Plc Reports 62.16 % increase in EBITDA to USD 17.736 million of 3rd Quarter 2019-20 against USD 10.937 million to the corresponding period of last year.

PERFORMANCE HIGHLIGHT:

EBITDA growth continuing of rising to 16%for the 3rd Quarter 2019-20 against corresponding to the same period of last year. The Pharma segment continues to be the biggest driver of top and bottom-line growth.
Company revenues increased 09 %in Q3 2019-20 against Q3 of 2018-19, supported by International Trade of pharma products' growth which is the major contributor of the total revenue.
Company's net profit increased to 62.37%in Q3 comparing last year Q3 Net profit for the period in actual is USD 17.733
The net worth increased from USD 239.009 mn (Q3 2018-19) to USD 278.389 mn in Q3 2019-20 - nearly 48 % increase.
The Current Ratio recorded for the quarter is 46 which is at par with the trading and distribution business companies

RESULT ANNOUNCEMENT

Q3 2019-20

STATEMENT FROM MANAGING DIRECTOR:

We're encouraged by our third-quarter results as our disciplined growth strategies continue to deliver strong underlying performance.

We ended the third quarter this year on robust footing as we reported growth in EBITDA and remain focused on quality new opportunities across our core markets in UAE, India, Honk Kong, China, the Middle East and the United States where we continue to see attractive business counterparts. We have also further strengthened our leading position across all market sectors as we added an array of business projects in segments including API in pharma, particularly therapeutic segments.

We have improved the current ratio from 1.40 as on 31.03.2019 to 1.46 as on 31.03.2020. Both the figures are well above the level of corresponding trading companies' ratio and show the company's efficiency to meet its liquidity obligation.

As the sales of the Trading operation is increasing trend, it is more capable that the company is of paying its obligations, as it has a larger proportion of asset value relative to the value of its liabilities.

The TOL/TNW ratio for the third quarter of 2019-20 improved to 1.43 from 1.55 of the same quarter of last year which is at par with their projected level and well above the industrial average.

I assure to all of our consumers that the businesses are gaining strong traction, reflecting our customer obsession and investments in best-in-class trade platforms. The international market provides exciting opportunities to scale-up these businesses and maximize long-term shareholder value in the coming years. The retail business recorded robust growth in revenue and profitability.

In summary, we continue to see the future with optimism and feel that Beaufond remains ideally positioned to capitalize on growth opportunities in its key markets. Our time-tested strategy serves as the appropriate framework to continue to drive our rapid growth. Moreover, I remain confident that we have the right team in place to continue to build out what has proven to be the leading international business out of the globe

Sachin Saini

Managing Director

The board is headed by Mr. Atanu Sen, Chairman & Non-executive Independent Director, and efficiently managed by Mr. Sachin Saini, Managing Director of the company, supported by with 4 independent directors - Mr. John Oppermann, Ms. Sangeeta Lakhi, Mr. Chelven Chengabroyan and Ms. Constance Mabhande.

Directors' Observations:

Beaufond Plc achieved the consolidated revenue USD 917,224,965 during the first Nine-month ending 31.03.2020 with a remarkable increase of 22.34 % y.o.y growth comparing the last year Nine months result of USD 749,713,251.

The gross profit y.o.y on increase in trend and as on 31.03.2020 it is 21.35 % - in term of actual, it is USD 67,377,559 for 2019-20. It is a popular tool to evaluate the operational performance of the business which indicates the company's financial health. Here it tells investors how much gross profit every dollar of revenue Beaufond is earning.

The company earned a net profit of USD 24,899,188 for the 9 months period from 01.07.2019- 31.03.2020 and recording higher profit growth of 11.12 % y.o.y which clearly direct that the company is more efficient at converting sales into actual profit.

During the Q3 of 2019-20, the net worth of the company increased to USD 278,389,322 against the same of last year Q3 shows the result of USD 239,009,508 with an increase of 16.48 %.

These financial results are an impressive testament to the achievements of our management and staff in Q3 2019.

The Directors are optimistic about the prospects for the ensuing year and expect to improve the performance of the Company.

Business Scenario

General information on the trend of the Company's business (2019-2020):

In 2009, Beaufond systematically and clearly set forth in writing the implicit values it shares as common knowledge, and issued its "Mission, Vision and Values". To "strive to contribute to the creation of a future where the aspirations of the people can be fulfilled," set in Beaufond's Mission, in 2017. We defined 2017 was an important year where we have the dedication to achieve USD 1 billion turnovers by 2020, but it is a milestone in the history of Beaufond that the company crossed the 1 billion targets in 2019 itself.

In the Q1, H1 and Q3 ended 30th September, 31st December 2019 and 31st March 2020 respectively, Beaufond made very significant progress, enhancing base profit in all segments by achieving solid results in each of their key initiatives. With this motivated result, Beaufond strongly pushed forward with the annual strategic plan 2020 with even deeper confidence that could be achieved over and above

Corporate social responsibility

Over the past several years, Beaufond has established a strong foundational framework for social and environmental initiatives both, within the organization as well as outside. The focus on governance and the wider social conscience has increased the presence of the company in recent years.

Beaufond's business strategy in 2020

Significant progress made in the first three quarters of 2019-20. On continuing, implementation of strategy and the updated strategy are outlined in 2020 for continued to channel the company's growth trajectory along a well-defined path. Significant progress was made in the implementation of the three key tenets of the Company's strategy: Capacity building, capabilities focus and geographic expansion.

The combination of organic and inorganic expansion in recent years has laid a solid foundation for the company's continued growth in the foreseeable future. Management continues to extract significant value out of the business by improving efficiencies at existing facilities which helps to unlock revenue and cost synergies. Keeping the aforementioned in view, management remains confident of continued strong growth provided for 2020.

The most significant trends

As the Company deals with many products globally, the specialist in the purchase and sales department draw short term and long-range plans yearly and effectively selecting the products that are moving fast with consumers' preference. The significant trend in production and sales are very much encouraging.

During the year 2018-19, as the pharma products fetch good market and wide gap of income, the management has taken a decision to increase the incremental sales of the pharma products to 40% more than the last year and considerably reduce the IT and multimedia and general merchandise sales.

The current year 2019-20, the projected sale in the pharma product has been aimed for incremental sales from 35 to 40% compared last year and the other the IT & multimedia and general merchandise aimed to be 85 - 90% of the last year sales figure - the present Q3 result shows that these projections could be achieved easily.

The recent trend in costs and selling prices

Beaufond has continuously made inroads in growing, deepening and diversifying its purchasing, trading and products base, corporate and institutional customers across markets that it operates in well-defined 'demand and supply' concept. Supplementing it base, the company continues to maintain access to various channels, to support the growth of its investor base, as well as to increase flexibility and reduce funding cost in capitalizing on business opportunities.

The R&D wing in the company identifies the key variables that are major influences in the cost and benefits of the company. Demand, expenses, operating costs and legal costs, revenues and financial benefits etc., are included in this stage. Only un-favorable changes are accounted for to consider the impact of these changes on the profitability of the company. This helps in identifying and implementing the actions that will help to mitigate these adverse effects. The department balances whenever the cost prices increase considerably; the same is adjusted by selling price, reduction on production and sales expenses etc., for stable and sustainable growth and profit as per the strategic plan of the respective year.

Perseverance is a part of the Company's culture and it lives it every day. The impact of this philosophy can be felt in every aspect of Beaufond's business and workplaces. It fuels Beaufond's pursuit of excellence and inspires to push for better ideas and outcomes. It drives the management to constantly improve their business' practices by adopting innovative processes and practical solutions that allow them to win in every scenario about the Company.

Contact Investors' Relation:

Ms. Remedios Macalan Quinagoran

Phone: 971- 43344323

Email: info@beaufond.com

Web site: www.beaufond.com

IMPORTANT NOTICE AND DISCLAIMER

This document has been provided to you for information purposes only. This document does not constitute an offer of, or an invitation to invest or deal in, the securities of Beaufond Plc (the "Company"). The information set out in this document shall not form the basis of any contract and should not be relied upon in relation to any contract or commitment. The issue of this document shall not be taken as any form of commitment on the part of the Company to proceed with any negotiation or transaction.

Certain statements contained in this document constitute forward-looking statements relating to the Company, its business, markets, industry, financial condition, results of operations, business strategies, operating efficiencies, competitive position, growth opportunities, plans and objectives of management and other matters. These statements are generally identified by words such as "believe", "expect", "plan", "seek", "continue", "anticipate", "intend", "estimate", "forecast", "project", "will", "may" "should" and similar expressions. These forward-looking statements are not guaranteeing of future performance. Rather, they are based on current plans, views, estimates, assumptions and projections and involve known and unknown risks, uncertainties and other factors, many of which are outside of the Company's control and are difficult to predict, that may cause actual results, performance or developments to differ materially from any future results, performance or developments expressed or implied from the forward-looking statements.

These figures and classifications are unaudited, have not been verified by a third party, and are based solely on management's estimates.

The Company does not make any representation or warranty as to the accuracy of the assumptions underlying any of the statements contained herein. The information contained herein is expressed as of the date hereof and may be subject to change. Neither the Company nor any of its controlling shareholders, directors or executive officers or anyone else has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations or by any appropriate regulatory authority.