What's Happening?
Square Pharmaceuticals has announced that its Kenya-based subsidiary has achieved profitability less than two years after commencing commercial production. The subsidiary, Square Pharmaceuticals Kenya EPZ
Limited, reported an operating profit of Tk10.20 crore and a net profit of Tk10.21 crore for the fiscal year ending June 2025. This marks the first time the unit has achieved sustained profitability through core operations, as opposed to previous gains driven by foreign exchange fluctuations. The company's success is attributed to significant revenue growth, improved market penetration, and efficient cost management.
Why It's Important?
This development is a major milestone for Square Pharmaceuticals, highlighting its successful expansion into the East African market, which is one of the fastest-growing pharmaceutical markets on the continent. The profitability of the Kenya unit underscores the company's strategic execution and the growing demand for its products in the region. This achievement not only strengthens Square Pharmaceuticals' position in Africa but also sets the stage for further expansion and potential export opportunities within the East African Community. The success of the Kenya unit could serve as a model for other companies looking to enter emerging markets.
What's Next?
Following its profitability, Square Pharmaceuticals' Kenya unit is poised to expand its operations and increase its market share in the region. The company plans to focus on recovering accumulated losses and preserving capital for future growth, rather than distributing dividends. Additionally, the unit has made its first export shipment, signaling the start of a broader regional export strategy. As the Kenyan pharmaceutical market continues to grow, Square Pharmaceuticals is well-positioned to capitalize on rising healthcare demand and supportive local manufacturing policies.
