Listed drug manufacturer Renata PLC posted a drop in profits in the third quarter of the 2024–25 fiscal year despite registering a 16 percent jump in sales revenue.

The company's profit declined by 20 percent year-on-year to Tk 58 crore in the January-March quarter of FY25 due to costlier raw materials, higher energy prices, and rising interest costs.

During the same period, Renata's sales rose 16 percent year-on-year to Tk 1,070 crore, thanks to increasing domestic demand.

However, the company said its sales fell in international markets.

The pharmaceutical company's animal health and contract manufacturing segments declined by 19.6 percent and 31.9 percent respectively, according to its unaudited financial statement.

Regarding the lower profits, the company said it paid 18.3 percent more to employees in the third quarter this year compared to the corresponding period last year.

Expenditure on energy also climbed 6 percent year-on-year, while maintenance costs rose by 26.3 percent.

Furthermore, the company witnessed its finance costs double due to interest rate hikes in the banking sector, as it had taken loans for business expansion.

The company's finance cost jumped to Tk 45 crore in the January–March quarter this year from Tk 23 crore in the same period last year.

The listed medicine producer's earnings per share stood at Tk 4.85 for the January–March quarter this year, down from Tk 6.33 in the same quarter the previous year, according to the financial statement published Wednesday.

Renata develops, manufactures, and markets both human and animal health products.

The company has offered some good news to its investors as well.

The company said it had introduced 52 new products, invested Tk 3.04 billion in business expansion, and is planning to issue equity preference shares to reduce its long-term interest burden.