It gives me great pleasure to present our Company's 33rd Annual Report. In a nutshell:
Our consolidated operational revenue for the year FY18 changed from last year of '8024 Mn to ' 8151 Mn (an increase of 1.6%). On a yearly basis EBITDA has gone down from' 2028 Mn in FY17 to ' 1971 Mn in FY18 (decrease of 2.8% on Y-o-Y basis). Ourconsolidated PAT for FY18 is ' 886 Mn in comparison to ' 1127 Mn in FY17.
Since majority of the company's sales are export driven and are primarily from theAfrican countries the decline in Standalone FY18 Sales was due to the economicinstability and currency devaluations in those countries.
Major Sub-Saharan African economies have been experiencing economic turbulence andcurrency re-rating & devaluations we were able to insulate to a large extent ourexisting revenues from these markets however it did have an impact on the growth rates.We anticipate that as these economies rebound it will help us to bring the sales growthback on track.
The net proceeds from this transaction will be used to repay a portion of the company'sdebt fund capital expenditure for the expansion of company's manufacturing facility aswell as incentivise our shareholders.
During FY18 Kremoint Pharma Pvt. Ltd. India a 70% subsidiary of BGPL has acquired60% stake in Echo Rich Cosmetic India Pvt. Ltd. a Mumbai based company engaged inmanufacturing of cosmetic personal & healthcare OTC Pharma products. Their basket ofproducts will further enhance BGPL's product portfolio.
The company's existing business is majorly generated from antimalarial anti-fungal& anti-bacterial segments. The existing and upcoming registrations in othertherapeutic segments such as antibiotic anti-inflammatory anti-diabeticanti-hypertensive cough & cold etc. will help us gain market share.
Bliss GVS has enjoyed a 26% CAGR over the last three years. I strongly believe thatthis is a direct result of the organization being true to its principles. In response togrowing customer demands we have continuously enhanced our R&D and productioncapabilities and expanded our product portfolio across dosage forms and therapeuticsegments. Today I am proud to say that our distribution portfolio comprises 250+ productsthat are consumed across 64 countries. Specifically we are among the world-leaders in theSuppositories and Pessaries dosage form and our brands are recognized among the leadingones in the generic anti-malarial segment in most African countries. Over the years wehave thus successfully shaped sustainable business relationships across the globe thatwill provide the backbone for continued future growth.
One of the great privileges of working in the pharmaceutical industry is theopportunity to directly contribute towards the advancement of human quality of life. Thishas always been our greatest source of purpose in propelling Bliss GVS forward.
Once again our pharmaceutical business delivered stable results despite a challengingmacroeconomic environment in some of our markets. We continue to retain our leadershippositions in antimalarials across Sub-Saharan African (SSA) markets - our key brands ofLonart and P-Alaxin delivered strong numbers across the board. Our flagship brands ofFunbact and Lofnac are household names in anti-fungal dermatology and pain managementrespectively across Anglo-West Africa and East African markets and continue to grow inthese markets.
Our efforts to grow our business outside SSA markets are also showing healthy signswith encouraging developments in both South-East Asian and CIS regions. The efforts inthese regions are largely focused on the suppositories and pessaries segment where ourniche expertise provides a key differentiating factor. The company has recently enteredthe Phillipines market & also opened offices in Myanmar & Vietnam forregisteration & marketing of our products.
Our continued investments in R&D will help drive these new initiatives in currentand new markets. I am confident that it is well-placed to build on recent investments madein R&D and marketing to expand our presence in existing markets and build a solidbusiness in new markets.
To conclude I would like to sincerely thank all shareholders partners and employeesfor their support over the last year. I believe the organization is well-placed to drivegrowth in the years to come and look forward to this continuing support from allstakeholders.
S. N. Kamath