INDIES Pharma Jamaica Limited returned to growth in its July quarter, posting double-digit increases in revenue and profit as the pharmaceutical company continued to recover from the disruption caused by Hurricane Melissa.

Revenue for the three months ended July 31 climbed 12.4 per cent to $292.4 million from $260 million a year earlier, while net profit rose 25.1 per cent to $38.5 million from $30.8 million. Gross profit increased 20.1 per cent to $204.2 million.

The improvement marks a sharp turnaround from the company’s first quarter, when Hurricane Melissa disrupted business across sections of southern and western Jamaica and pushed revenue and profit lower.

Indies Pharma had reported first-quarter revenue of $279.8 million, down 14.1 per cent, while net profit fell to $21.7 million from $74.2 million a year earlier. At the time, the company said the hurricane had affected projected sales growth but expected business to improve as economic activity normalised.

That recovery is now becoming more visible.

For the latest quarter, profit from operations rose 33.1 per cent to $64.2 million, up from $48.2 million a year earlier. However, finance costs also increased to $23.9 million from $15.1 million during the quarter, limiting some of the benefit from the stronger operating performance.

The company is carrying a new $1-billion bond at 9.5 per cent, which replaced an $805-million bond carrying a seven per cent rate. The new debt was raised through a private placement arranged by NCB Capital Markets, with most of the proceeds earmarked to repay the earlier bond and the remainder available for investment.

Despite the stronger July quarter, Indies Pharma has not yet fully recovered from the weak start to its financial year.

Revenue for the nine months ended July 31 was $857.1 million, barely above the $855.9 million recorded a year earlier. Net profit for the period fell 28.5 per cent to $120.5 million from $168.5 million, while finance costs rose to $71.5 million from $44.8 million.

Management said the year-to-date numbers still reflected the after-effects of Hurricane Melissa, but described the third-quarter performance as evidence that the business was recovering.

The company’s balance sheet also expanded during the period. Total assets rose 13.1 per cent to $3.15 billion, while total liabilities increased 30.7 per cent to $1.39 billion. Indies Pharma attributed much of the increase in liabilities to the new $1-billion bond used to retire the previous $805-million facility.

Cash stood at $418.3 million at the end of July, nearly twice the $215.5 million held a year earlier.

The company also continues to hold its three-acre Ironshore property in Montego Bay, earmarked for a planned corporate headquarters and warehouse complex. Dr Guna Muppuri said last year that the board was still considering the timing and financing of that development after the bond refinancing.