Indies’ Q2 Earnings Slip, But Six-Month Earnings Still in Good Health

  • Local pharmaceutical distributor Indies Pharma Jamaica Limited (Indies) reported a 9.2% decline in earnings to $63.77Mn for its second quarter ended April 2025 (Q2 2025). However, aided by a favourable first quarter performance, its earnings grew by 3.2% to $156.61Bn for the six-month period ended April 2025 (6M 2025).
  • Gross profits fell 4.4% to $199.38Mn, as a 10.4% decline in revenue to $270.00Mn was mitigated by a 24.0% decline in direct costs to $70.61Mn. While the group benefited from a 2.1% decline in administrative and other expenses to $201.85Bn and a tripling of Foreign Exchange Gains to $1.71Mn, it was insufficient to prevent the reduction in second quarter profits.
  • Despite the Q2 dip, the group’s 6M 2025 earnings are still up year to date, on the back of a stronger Q1 2025. Revenue increased by 4.4%, outpacing the 2.3% increase in direct costs. Consequently, gross profits rose 5.3% for 6M 2025. Notably, bottom-line growth was also bolstered by a $6.37Mn (3.8%) decline in Admin and other expenses, which ultimately contributed to the higher profits.
  • With 6M earnings still in good health, major developments in its drug development strategy could support future earnings growth. Indies successfully secured a distribution agreement in the United States for its USFDA-approved drug, REGADENOSON2. This move is expected to create new revenue streams and significantly expand the company’s international market presence, with commercial sales and distribution targeted by the end of fiscal year 2025. However, success will ultimately depend on how well it navigates potential risks and challenges like the highly competitive U.S. pharmaceutical market, high US distribution and marketing costs, potential drug approval setbacks, and the significant expense of ongoing research and development.
  • Indies’ stock price has increased by 2.8% year-to-date, closing at $3.63 as of Tuesday. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 20.74x, which is higher than the Junior Market Health Sector’s average of 18.62x.

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1 According to Indie’s latest annual report, OOI includes insurance claim, rental income, and gains on the disposal of property, plant and equipment. However, the 6M 2025 report offered no breakout.
2Regadenoson is used to test the heart for coronary artery disease. It is used in patients who cannot exercise for their stress test.

(Source: JSE & NCBCM Research)