Intravenous Infusions Forecast 25% Jump In Profitability In 2025 With Two New Revenue Streams
Pharmaceutical company Intravenous Infusions is forecasting a 20% to 25% increase in profitability next year as the company looks to expand its revenue streams with the introduction of two new products.
The launch and commencement of sales of the two new products, according to the Chief Executive Officer (CEO) of Intravenous Infusions, Moukhtar Soalihu, will be done in the last quarter of this year.
Making the disclosure at the Fact Behind The Figures event organized by the Ghana Stock Exchange (GSE) on Wednesday, August 14, 2024, Mr Soalihu quipped the two new products are going to rake in substantial revenue for the company.
“We are sure that these two new products are going to bring substantial revenues to the company, at this moment, we are looking at between a 20% to 25% increase in revenue from the two products.
“But we may not see it strongly this year because we are already in August and we are looking at these two new products coming in the last quarter of this year. But in 2025, we will see its real effects in terms of its addition to revenue,” he averred.
Adding that for “strategic and competitive reasons” he could not reveal what the two new products were until their official launch.
The Ghana Alternative Market (GAX) listed company, recorded a strong increase in revenue by 54.3% in 2023, following a 10% revenue decrease in the 2022 financial year.
The increase in revenue is attributed to the deliberate pursuit of new strategies and policies aimed at maximizing revenues and efficiency, driven by improvement in controls.
The revenue growth rate achieved coupled with prudent management of costs resulted in turning the losses of GH¢3.5million recorded in 2022 into a profit before tax of GH¢3.3million in 2023.
Retained earnings increased by 242% compared with a decline of 77% in 2022. Shareholders’ funds increased by 17.2% relative to a decline of 19.2% in 2022.
Assets utilization ratio of Intravenous Infusions also improved significantly from 43.5% in 2022 to 67.6% in 2023. The company in 2023 recorded profit of GHS 2.5m
Intravenous Infusions has been producing and distributing Intravenous Fluids in Ghana and the West African sub-region since its incorporation in 1969 and eventual commencement of operations in 1974.
The company was set up to take advantage of the total lack of local production of infusions and the country’s dependence on imports of infusions.
At full capacity, Intravenous Infusions can produce 10 million units of infusions a year, it is however, currently producing 5 million units of infusions per year with its available capacity.
The company, however, managed to produce 6.2 million units of infusions last year as against the country’s demand of 8 million units.
