Renata PLC's sales grew in the first half of fiscal 2024-25, driven by strong revenue growth in pharmaceuticals.

However, the drugmaker's profits declined sharply due to higher wages, increased depreciation of the local currency, and rising interest costs.

The listed drugmaker's sales rose 12 percent year-on-year to Tk 2,086 crore during the July to December period of the 2024-25 fiscal year.

Its profits plunged 35 percent year-on-year to Tk 124 crore in the first half of the fiscal year, according to the company's financial statement.

The sales and profit trends remained consistent in the second quarter, as revenue grew 16 percent, fuelled by higher sales in pharmaceuticals, animal health, exports, and contributions from subsidiaries.

However, the company's quarterly profits dropped 27 percent year-on-year to Tk 64 crore.

Renata reported 18 percent export growth and 24 percent growth in the animal health segment in the second quarter.

The company attributed its profit decline to increased finance costs, driven by local currency devaluation against the US dollar, particularly in December 2024.

Its finance costs surged 39 percent year-on-year to Tk 78 crore in the first half due to higher debt, increased interest rates, and foreign exchange losses.

Renata's wage costs rose significantly following increments in January 2024, higher headcounts, and increased payments to casual and contractual workers in September 2024 after worker unrest in August.

Depreciation expenses also climbed as new capacity expansions were completed, alongside higher investment in product development and maintenance, as per the financial statement.

Renata released its financial results yesterday, and its stock price fell 1 percent to Tk 579 on Thursday at the Dhaka Stock Exchange.