Philadelphia Pharmaceuticals marks profitability boom with bonus shares

AMMAN — Jordan Securities Commission last week authorised Philadelphia Pharmaceuticals Company to raise its capital to JD5 million.

The capital increase from JD3 million will be achieved through capitalising JD2 million of retained earnings and distributing them as bonus shares at a rate of two for every three shares held by shareholders on June 2, 2015.

The bonus shares mark the first dividends given to shareholders since Philadelphia Pharmaceuticals became a public shareholding company in 2006.

After few years of losses and weak performance, the company forged ahead in 2013 when sales shot up to JD4.5 million from JD1.2 million in the previous year and the JD0.5 million loss recorded in 2012 turned into a JD0.6 million profit that expanded significantly in 2014.

According to 9th annual report as of December 31, 2014, sales surged by 132 per cent reaching JD10.4 million, of which JD7.7 million were exports and JD2.7 million were local sales.

The net profit at the end of last year amounted to JD3 million, 364 per cent higher than the JD0.6 million generated in 2013.

During the first quarter of this year, Philadelphia Pharmaceuticals increased sales to JD3 million, 15.4 per cent higher than the JD2.6 million registered during the first three months of 2013.

Net profit at the end of March 2015 came at JD0.8 million compared to JD0.7 million at the end of March 2014.

The balance sheet as of March 31, 2015 showed total assets at JD9.3 million, of which JD1.9 million were property, equipment and machinery. Receivables accounted for JD4.8 million of the total assets.

As of March 31, 2014, total assets amounted to JD7.9 million, JD3.3 million of which were receivables.

Of the JD2.5 million in total liabilities, loans and bank credits stood at JD1.2 million, compared to JD0.9 million at the end of last year's first quarter when total liabilities were JD1.9 million.

Auditor PricewaterhouseCoopers Jordan indicated in a quarterly review report that the company's operations are marked by credit risk concentrations as sales to four principal clients represented 94 per cent of the total compared to an 88 per cent rate in 2013.

Although four primary customers also owe the company 96 per cent of total receivables, compared to 89 per cent in 2014, the auditor said the company did not encounter any problems in collecting its dues from those clients in the past.

Chairman Munther Ahmed Hussein wrote in the annual report that Philadelphia Pharmaceuticals changed the operation mechanism in one the company's main markets and also changed two of its agents abroad.

He highlighted Gestophil as a new hormone product that the company started marketing in Iraq besides the local market, indicating that new brands were acquired to be marketed and sold in Gulf Arab countries and Iraq.

"Based on set plans, several new products will be launched this year," the chairman said in a foreword, indicating that Philadelphia Pharmaceuticals will be entering in 2015 one of the big and promising markets within its field.

Noting that the company's top priority was to have distinguished and qualified staff, Hussein said that the number of employees increased last year to 134 from 88 workers to keep up with advancement, especially the research and business development departments.  

Hussein mentioned raising the manufacturing efficiency with new production, packing and packaging equipment, and stressed the importance of development and registration of new products.

According to the annual report, capital investment at the end of last year amounted to JD7.9 million.

Shareholders equity was higher at JD5.9 million compared to JD2.9 million at the end of 2013.

The factory, situated on a 4,479 square metres of land in Sahab, operates two main production lines spread over 3,599 square metres, Another 943 square metres are ready for future expansion.