Slide 1: Q2 and H1FY24 Earnings Presentation
Q2 and H1FY24 Earnings Presentation 9th November 2023
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company's results may
Slide 3: Table of Contents
Q2 and H1FY24 Financial and Business Highlights Table of Contents About Marksans Pharma Marksans Pharma is India’s leading pharmaceutical company specializing in the research, manufacturing, and marketing of Roadmap for the future generic pharmaceutical formulations ESG 3
Slide 4: Q2 and H1FY24 Business & Financial Highlights
Q2 and H1FY24 Business & Financial Highlights
Slide 5: Management Commentary
Management Commentary “Building on the momentum, we have another strong quarter both in terms of revenue and operating margins. Revenue grew by 17% YoY in Q2 led by increased demand and market share gains across our key regions. We continue to remain focused on strengthening our OTC portfolio and gr
Slide 6: Financial Highlights Q2FY24 – YoY Performance
Financial Highlights Q2FY24 – YoY Performance YoY Growth ₹ Cr. Q2FY24 Q2FY23 % YoY Performance Revenue growth is being driven by market share gains, Revenue 531.2 452.6 17.4% new launches, and an increase in our share with existing customers. Gross Profit improved mainly on account of a reduction in
Slide 7: Financial Highlights Q2FY24 – QoQ Performance
Financial Highlights Q2FY24 – QoQ Performance QoQ Growth ₹ Cr. Q2FY24 Q1FY24 % QoQ Performance Revenue growth is being driven by increased demand Revenue 531.2 500.0 6.2% across key regions. Revenue from the US and North America grew by 15% QoQ and grew around 23% QoQ from ROW regions. Gross Profit
Slide 8: Financial Highlights H1FY24 – YoY Performance
Financial Highlights H1FY24 – YoY Performance Operating Revenue (₹ Cr.) Gross Profit (₹ Cr.) & Gross Profit Margin (%) 1,050.0 50.6% 52.0% 1,000.0 535.8 950.0 900.0 1,031.3 850.0 886.3 448.3 800.0 H1FY23 H1FY24 H1FY23 H1FY24 EBITDA (₹ Cr.) & EBITDA Margin (%) PAT (₹ Cr.) & PAT Margin (%) 25.00% 14.6
Slide 9: Other Highlights
Other Highlights Revenue from operations in Q2FY24 is at Rs 531.2 cr. , out of which US revenues is at Rs 222.3 Cr. , UK and Europe revenues at Rs 233.3 Cr., and Australia and New Zealand revenues at Rs 48.4 Cr. EBITDA in Q2FY24 is at Rs 113.9 cr., EBITDA margin is at 21.4% Research & Development (R
Slide 10: Q2FY24 Financial Trends
Q2FY24 Financial Trends Operating Revenue (₹ Cr.) Gross Profit (₹ Cr.) & Gross Profit Margin (%) 600.0 50.5% 50.7% 50.1% 49.8% 51.5% 52.4% 500.0 257.3 278.5 218.9 229.4 240.3 242.1 400.0 300.0 479.8 486.0 500.0 531.2 200.0 433.8 452.6 100.0 0.0 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q1FY23 Q2FY23
Slide 11: H1FY24 Revenue split by Region
H1FY24 Revenue spilt by Region USA UK and Australia RoW Regions Europe and New Zealand % of total Operating 40.3% 44.5% 10.4% 4.8% Revenues YoY Revenue -3.2% 14.1% 22.6% 10.9% Growth • Revenue from the USA region • Revenue from the UK and • Revenue from the Australia • Revenue from RoW region in in
Slide 12: Q2FY24 Region wise Trends
Q2FY24 Region wise Trends US & North America (₹ Cr.) Europe and UK (₹ Cr.) 250.0 200.0 225.9 233.3 193.5 206.3 181.0 186.8 150.0 217.0 222.3 100.0 173.9 190.3 193.5 193.3 50.0 0.0 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Australia and New Zealand (₹ Cr.) Re
Slide 13: Segmental Mix
Segmental Mix Therapeutic Segment-Wise Split Segment Revenue Split 6.8% 8.2% 11.7% 13.9% 12.7% 14.6% 7.5% 8.3% 8.6% 7.3% 6.6% 8.5% 6.0% 1.6% 44.1% 8.8% 20.6% 18.4% 10.9% 51.0% 3.6% 8.1% 54.7% 58.6% 11.7% 6.0% 11.4% 68.6% 6.3% 6.7% 14.0% 74.4% 9.0% 8.5% 12.4% 13.8% 13.1% 9.0% 9.2% 15.4% 15.4% 14.5% 5
Slide 14: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (₹ cr.) Q2FY24 Q2FY23 Q1FY24 YoY QoQ H1FY24 H1FY23 YoY FY23 Operating Revenue 531.2 452.6 500.0 17.37% 6.25% 1,031.3 886.3 16.36% 1,852.10 Gross Profit 278.5 229.4 257.3 21.41% 8.25% 535.8 448.3 19.52% 930.8 Gross Margin % 52.43% 50.68% 51.50% 174 b
Slide 15: Balance Sheet
Balance Sheet Particulars(₹ Cr.) H1FY24 FY23 Particulars(₹ Cr.) H1FY24 FY23 ASSETS EQUITY AND LIABILITIES NON-CURRENT ASSETS EQUITY Property, Plant & Equipment 452.5 379.6 Share Capital 45.3 45.3 Capital work-in-progress 18.8 7.2 Reserves and Surplus 1,830.3 1,699.8 Goodwill 38.7 38.5 Non-Controllin
Slide 16: About Marksans Pharma
About Marksans Pharma
Slide 17: Marksans Pharma - At a Glance
Marksans Pharma - At a Glance Market Reach Accreditations Cash in hand Global footprint- Present in 50+ countries USFDA, UK MHRA, Australian Cash position of ₹661 cr. and a net debt- ~96% revenue generated from the regulated TGA, EU, Health Canada and free position as of 30th September 2023 markets
Slide 18: Manufacturing Capabilities
Manufacturing Capabilities Manufacturing Facility in Southport, UK • Manufactures non-sterile liquids, ointments and powder sachets UK • Supplies to UK, West Africa & Middle East • Spread across 7,300 sq. meters C A PAC I T Y ACC R E D I TAT I O N S 2 bn bottles per annum 1 bn tubes per annum 1 bn s
Slide 19: Business Structure
Business Structure Supply and Distribution through a network of subsidiaries 100% 100% 60% 100% 100% 100% 100% Distribution of Engaged in the business quality generic of marketing of Manufactur 162+ pharma medicines in the UAE er of OTC product Manufacturer of range of OTC & Rx and neighboring Liqui
Slide 20: OTC Store Brand Retailers/Customers
OTC Store Brand Retailers/Customers • In the OTC Segment, Marksans manufactures store brands (private label manufacturing) for retailers/customers and manufactures OTC products through its own label as well. • The company has more than 1500+ SKUs and 300+ products • Marksans is a preferred store bra
Slide 21: High Growth Trajectory
High Growth Trajectory Operating Revenue (₹ Cr.) EBITDA (₹ Cr.) Net Profit (₹ Cr.) Segmental Revenue Mix (%) 1,852.1 265.3 339.3 58% 74% 767.2 42% 44.7 26% 11.3 FY17 FY23 FY17 FY23 FY17 FY23 FY17 FY23 Rx OTC ROE (%) ROCE (%) Net Debt to EBITDA (%) Fixed Asset Turnover Ratio (x) 17.8% 18.8% 3.7 1.9 2
Slide 22: Roadmap for the future
Roadmap for the future
Slide 23: Roadmap for the future
Roadmap for the future Consistent Growth in Topline and Profitability Strengthening the OTC Business Backward Integration for sustained Supplement growth through Continued product launches through • Aim to capture a significant part margin development acquisitions a healthy product pipeline of the m
Slide 24: The OTC Opportunity (1/2)
The OTC Opportunity (1/2) Global OTC Drugs Market ($ Bn) • In 2022, the OTC market grew by 10.4% YoY to achieve total 210 global sales of $176 billion. 176 • North America and Western Europe have the highest market shares • North America OTC holds around ~25% of total global sales 106 • Robust growt
Slide 25: The OTC Opportunity (2/2)
The OTC Opportunity (2/2) Category Value Share • According to IQVIA, Cough and cold and Respiratory, Pain Relief, Nutrition, Gastrointestinal, Dermatology, and Allergy are the Nutrition 22.1% largest OTC therapeutical segments globally according to total OTC Gastrointestinal 15.7% sales • Marksans i
Slide 26: Continued product launches through a healthy product pipeline
Continued product launches through a healthy product pipeline Strong product pipeline followed by successful launches led by continued focus on R&D • Planned 34 new filings over the next three years • In addition, 16 products are already filed and awaiting • 10 products are in the pipeline approval
Slide 27: Key Product Launches
Key Product Launches Brand Composition Therapy Segment Market LOSARTAN LOSARTAN 25 MG, 50 MG, 100 MG TABLETS Anti-Diabetic UK ONDANSETRON ONDANSETRON 4MG, 8 MG TABLETS Gastrointestinal UK CARVEDILOL CARVEDILOL 3.125 MG, 6.25 MG, 12.5 MG, 25 MG TABLETS Cardiovascular System(CVS) UK TRAMADOL TRAMADOL
Slide 28: R&D Capabilities
R&D Capabilities R&D Centers R&D (₹ Cr.) and R&D % to sales Expected to increase to ~4-5 % over the next few years 35.0 4.0% 1.5% 2.0% 1.6% 1.6% 1.4% Southport, United Kingdom 30.0 0.6% 0.6% 0.7% 2.0% 30.2 29.5 25.0 0.0% Farmingdale, United States Navi Mumbai, India Goa, India 20.0 -2.0% 18.9 15.0 1
Slide 29: Investment Rationale
Investment Rationale Follows calibrated inorganic growth approach: Marksans Funding through strategic Pharma has a proven record of investors and promoters: Headroom for Significant successful and capital-efficient Orbimed and Promoters fund Multiple Expansion acquisitions and creating a unique infu
Slide 30: ESG
ESG
Slide 31: ESG
ESG Healthcare Infrastructure Construction of New Building for Government Aided Sai Nursing Institute Free Food To Needed Joined hands with NGO’s to serving meals, ration, grocery kits for migrant families in People villages in Goa Medical treatment to under privileged society suffering from cancer
Slide 32: Thank you
Thank you For more information please contact: Jitendra Sharma Corporate Office (CFO) 11th Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Marksans Pharma Ltd Mumbai – 400 053, Maharashtra - India Tel: +91 022 40012000 jitendra@marksanspharma.com © 2020 Marksans Pharma Limi