Intravenous Infusions Plc recorded a strong increase in revenue – by 44% – during the first half of 2021, after a10.5% decline of revenue during the 2020 financial year. The decline is attributed principally to the effects of COVID-19, whereby volumes of sales across all business segments declined considerably.
The COVID-19 pandemic took a heavy toll of both human and economic development in many countries around the world. All sectors of the Ghanaian economy were affected. The health sector of the economy was not spared. Our health facilities came under stress, and all hospitals across the country were forced to reduce their admissions in order to create space for emergency admissions of COVID-19 patients.
This led to hospitals recording very low outpatient department (OPD) attendance, and in many of the hospitals the attendance rates were as low as 42% during the peak of the pandemic.
Additionally, the stigma of being infected among the populace kept many people from seeking medical help in the hospitals. The low intake of patients and the reduction in surgeries at the hospitals across the country reduced the demand and consumption of our products, reflecting the decline in revenue recorded during the year 2020. This resulted in the reduction of usage of IV fluids during the period, leading to a 10.5% reduction for 2020 financial year.
It is significant to note that the adverse effects of COVID-19 on our operations was stronger during the first six months of 2020 as government measures to contain the disease were strictly enforced. However, in the second half of 2020 our revenues began to grow as measures were relaxed and life started returning to normal.
Despite the problems resulting from rapid spread of the pandemic, IIPLC chalked up some successes in enhancing value to Shareholders. The existing controls were strengthened and new ones introduced. This resulted in an increase in operational efficiency at all levels of the organisational value chain, with operational costs declining by 9.7% (2019 increased by 18.1%) year on year.
Intravenous Infusions PLC made a profit of GH¢1,450,885 – resulting in an increase in retained earnings by 36.6%. Total assets grew by 22.5% (2019 14.8%) year on year as a result of using both internal and external funds for investments in plant, equipment and other operating assets aimed at creating future value for Shareholders.
As part of our Corporate Social Responsibility (CSR) activities, IIPLC donated infusions to Noguchi Memorial Institute to support testing of the COVID-19 virus in November 2020. IIPLC took the opportunity presented by the virus to go into the production and sale of hand sanitisers and handwashing soaps, the impact of which will be manifested in subsequent years.
Additionally, Intravenous Infusions PLC has obtained approval from Food and Drugs Authority (FDA) for commencing the construction of new factory premises through a medium-term loan facility of US$3.2million secured from Ecobank Ghana Ltd. under the Government of Ghana Stimulus Package for the procurement of plant and machinery, and expansion of the factory.
New plant and machinery have been procured and delivered to the factory awaiting installation. The board and management are currently sorting out some technical and financial details to make way for commencing construction of the premises.
The future of IIPLC continues to be bright and positive despite the effects of COVID-19. Policies aimed at maximising revenue and profits to Shareholders are vigorously being pursued. Strengthening the local market dominance and export market opportunities will be the focus.
IIPLC will intensify its ongoing collaboration on product development with the Kwame Nkrumah University of Science and Technology (KNUST) School of Pharmacy. As part of our product diversification strategy, a number of new products are being brought on board under a contract manufacturing arrangement with a strategic partner from India. In addition, the company is venturing into other non-drug areas such as medical consumables and disposables.