Starwin Products Company Limited (SPL) has posted an annual turnover of GH?4million in 2011, up from GH?3.7million in 2010 while net profit went up to GH?473,000.
The company?s ability to reduce its short-term loan stock during the 2011 financial year reflected in the increase of return on equity from 4.5 percent to 20 percent.
It plans to boost its stated capital from the current level of GH?1.98million to GH?6.00million through a rights issue to aid the company?s expansion drive.
The company plans to acquire new machines and equipment as it expands its production base and introduce new products onto the Ghanaian market. The company?s performance comes on the back of the cedi?s fast depreciation against major international currencies that has led to increase in production cost.
?The depreciation is having adverse effects on our operations and all players in the pharmaceutical industry,? Mr. Kwasi Yirenkyi, Managing Director, SPL, said.
He indicated that the company?s import bill for the first six months to June has gone up about 17 percent from the initial bill due to depreciation of the cedi.
Mr. Yirenkyi also bemoaned the long delay in refunding of withholding taxes to local manufacturers.
Players in the industry are grappling with the influx of cheap pharmaceutical products from Asia and other emerging economies, eroding the market share of local companies.
Starwin Products Limited originated from Sterling Products International Limited. The company was registered in Ghana in 1960 as Sterling Pharmaceuticals Ghana Limited, representing the parent American Pharmaceutical firm.
SPL officially listed on the GSE on December 29, 2004. It has 500 million authorised shares and more than 74.24 million issued shares. The company also has a stated capital of GH?1.98million.
