Dannex Ayrton posts higher revenue in 2022

Dannex Ayrton Starwin PLC, a pharmaceutical manufacturing company, last year recorded a revenue of GH¢ 95.79 million, surpassing the revenue of GH¢74.53 million in 2021.

This is as a result of the company's focus on driving growth in volume and competitive pricing.

The company ,however, recorded a loss/profit after tax of GH¢3.45 million, in contrast with the profit after tax of GH¢4.88 million reported in 2021.

The Board Chairman of the company, Nik Amarteifio, announced this at the 2022 virtual Annual General Meeting in Accra last Thursday.

Globally, he said the year 2022 presented numerous unprecedented challenges, making it one of the most arduous periods in recent history for businesses, adding that the challenges significantly impeded economic growth, causing a decline from 6.2 per cent in 2021 to 3.4 per cent in 2022. 

The primary factors, he said behind the decline were the escalating prices of energy and commodities, soaring levels of inflation and a shift in interest-rate policy. 

He said the hurdles were further intensified by the lingering effects of the global Covid-19 pandemic that was experienced throughout 2020 and 2021. 

“Even the pharmaceutical industry, renowned for its crucial role in promoting people's health and well-being, was not spared from these adversities.

The International Monetary Fund (IMF) forecasts a further decline in global growth with projections indicating a decrease from 3.4% in 2022 to 2.8% in 2023. The external developments mentioned above had a significant effect on our domestic economy,” he said. 

Foreign

The foreign exchange market, Mr Amarteifio said experienced substantial volatility, particularly at the beginning of the year in review and that it put considerable pressure on the local currency. “This, in turn, had a notable impact on operating expenses, amplifying the challenges faced during that period.

Ghana witnessed a significant surge in inflation from 12.5% in December 2021 to approximately 53.4% by the end of 2022. This notable escalation was driven by various factors, including demand pressures, currency depreciation, supply disruptions, increasing utility costs and increase in interest rates.

“Dannex Ayrton Starwin Pl was adversely affected by the substantial depreciation of the cedi against major trading currencies. As a consequence, the company incurred exchange losses amounting to approximately GH¢ 9.1 million,” he said.

Due to the numerous challenges encountered by the company, he said the board of directors was unable to recommend any dividend for the financial year ended December 31, 2022.

Internal control

He said the company had implemented an efficient and robust internal control system that promoted accountability, prevented fraud, improved operational efficiency and complied with laws and regulations, saying that the “the system also enhances the accuracy and reliability of corporate disclosures, which helps to protect investors' interests.

“Dannex Ayrton Starwin Pic believes that the support and patronage of society are vital for sustainable development of any organisation.