Square Pharmaceuticals’ Kenyan subsidiary has reached operating profitability for the first time in less than two years since beginning commercial production, which is a major international milestone for the business.

The achievement demonstrates the Bangladeshi drug maker’s expanding manufacturing footprint and growing market presence in East Africa, one of the continent’s fastest-growing pharmaceutical markets.

According to the audited financial statements for the year ended June 30, 2025, Square’s Kenya unit posted an operating profit of BDT 102 million and a net profit of BDT 102.1 million. This marked the first sustainable profit driven by core operations. In contrast, in the previous financial year 2023, the subsidiary’s marginal profit was largely due to foreign exchange gains, while its operating activities incurred substantial losses.

Revenue growth played a key role in this turnaround. Reflecting a 172 percent year-on-year increase in local currency terms, revenue rose to BDT 744.7 million from BDT 273.8 million in the previous year, as the company gained rapid traction in the Kenyan market. The company’s annual report noted that improved market penetration, higher capacity utilization, and strict cost control turned gross margins positive, enabling the plant to cross the operational break-even point.

In its audit report, Square Pharmaceuticals stated that the board was “satisfied” with the achievement of post-tax net profit for the first time, describing it as a “validation of the company’s execution strategy.” Management added that reaching profitability within just one and a half years of operations highlights the efficiency of the manufacturing setup and the strong demand for its products in the region.

The fiscal year 2025 also marked another milestone for the Kenyan subsidiary, as the first export shipment from the Kenya plant was recorded during the period. Although the initial export value was modest at around BDT 5.5 million, the company said it represents the beginning of a broader regional export drive and positions the unit to leverage cross-border trade opportunities within the East African Community (EAC).

Square Pharmaceuticals Kenya EPZ Limited was incorporated in June 2017 and operates a state-of-the-art manufacturing facility at the Athi River EPZ in Machakos County. The plant commenced commercial operations in January 2023 and began supplying products to the market in March of the same year. Square Pharmaceuticals PLC holds 100 percent ownership of the subsidiary. Kenya’s pharmaceutical market was valued at approximately USD 1 billion in 2024 and is projected to grow to USD 1.6 billion by 2031, driven by rising healthcare demand and policy support for local manufacturing.