Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Q2 FY25 Earnings Presentation
42 slides from Jb Chemicals & Pharmaceuticals's earnings presentation, Nov 7, 2024
Slide 1: Company presentation filing letter to NSE
November 7, 2024 National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400051. Stock Symbol: JBCHEPHARM Dear Sir, Sub: Company Presentation Enclosed is Company’s presentation on financial results for the quarter and half
Slide 2: JB Pharma – Q2 FY25 & H1 FY25 Investor Presentation
JB Pharma – Q2 FY25 & H1 FY25 Investor Presentation November 7, 2024
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Q2 FY25 Business Performance
Q2 FY25 Business Performance
Slide 5: CEO’s Message
CEO’s Message “ We maintained a healthy pace of growth in Q2, achieving Rs. 1,000 crore revenue for the quarter. EBITDA margins at 28% are at the higher end of our guidance range, given a favourable product mix and cost optimization initiatives. JB’s domestic business continued to out-perform the ma
Slide 6: Results Overview: Q2 FY25 vs Q2 FY24
Results Overview: Q2 FY25 vs Q2 FY24 Revenues (INR crores) 13% ◼ JB Pharma’s revenue crossed INR 1000 crores in a quarter for 13% the second consecutive time 2,005 1,778 – Revenue grew 13% to INR 1001 crores vs INR 882 crores in Q2FY24 882 1,001 ◼ Domestic formulations business recorded revenue of I
Slide 7: EBITDA Analysis
EBITDA Analysis INR crores Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 Revenue 1,001 882 2,005 1,778 Reported EBITDA 271 244 551 476 Included in Employee Non Cash ESOP Charge 14 7 25 18 Benefits expense Operating EBITDA 285 251 576 494 (Excluding ESOP charge)* Operating EBITDA margins 28.4% 28.5% 28.7% 27.8% *O
Slide 8: Financial Overview: Q2 FY25 vs Q2 FY24
Financial Overview: Q2 FY25 vs Q2 FY24 Operating EBITDA (INR crores) 28.7% ◼ Operating EBITDA grew by 13% to INR 285 crores 28.4% 27.8% – Operating EBITDA margin remained constant at 28.4% 28.5% 17% 13% 576 ◼ Gross margin excluding the ophthal business improved by more than 150 494 bps 251 285 – Gro
Slide 9: JB Balance Sheet: Cash Flows Remain Strong
JB Balance Sheet: Cash Flows Remain Strong As on 30 As on 31 Balance Sheet (INR Cr) Sept’24 Mar’24 ◼ Operating cash flows in H1 FY25 was INR 378 crores vs INR 421 crores in Net Worth 3,212 2,923 H1 FY24 – Cash tax increased to INR 97 crores in H1 FY25 vs 63 crores in H1 Other Liabilities 393 357 FY2
Slide 10: Domestic Business: Q2 FY25 vs Q2 FY24
Domestic Business : Q2 FY25 vs Q2 FY24 Domestic Formulations (INR crores) ◼ Domestic business continued its momentum and registered YoY 22% growth of 22% to INR 588 crores – Excluding ophthalmology portfolio, domestic business grew 12% 22% 1,183 ◼ Domestic business now constitutes 59% of overall tur
Slide 11: Ophthalmology Portfolio from Novartis Gaining Momentum
Ophthalmology Portfolio from Novartis Gaining Momentum Post Smooth Transition 57 ◼ After smooth integration in January’24, the ophthalmology 46 48 portfolio sales is progressing well ◼ Portfolio sales grew 19% to INR 57 crs in Q2 FY25 vs INR 48 crs in Q1 FY25 as per IQVIA data ◼ Dedicated field forc
Slide 12: International Business: Q2 FY25 vs Q2 FY24
International Business: Q2 FY25 vs Q2 FY24 3% 401 413 14% 300 ◼ International business revenue grew at 3% to INR 413 crores vs. 263 INR 401 crore -19% ◼ International formulations business grew by 14% to INR 300 crores 115 94 – South Africa and the US business registered double-digit growth 23 19 –
Slide 13: Investor Presentation
Investor Presentation
Slide 14: JB Pharma at a Glance
JB Pharma at a Glance INR3,484 Cr 5 Top 5 FY24 Revenue Brands in IPM Top 150 CDMO of Lozenges Globally Scale 54% #16 48% Domestic Revenue % Prescription Rank FY24 Chronic %(1) (FY24) (FY24) Domestic 1.4x 18% 26% Outperformance vs Revenue CAGR Operating EBITDA CAGR Growth IPM (MAT Sep’24) (FY20-24) (
Slide 15: One of the Most Attractive Domestic Formulations Business
One of the Most Attractive Domestic Formulations Business Consistently Outperforming the Indian Pharmaceuticals Market JB Pharma Consistently Outperforming IPM Growth 30% 25% 24% #22 20% 18% 18% 17% #23 MAT Sep ‘24 15% 13% 11% 10% 10% 7% 8% 8% #29 MAT Sep ‘22 5% MAT Sep ‘20 0% MAT Sep'21 MAT Sep'22
Slide 16: Majority of Portfolio in Fast-Growing Therapy Segments
Majority of Portfolio in Fast-Growing Therapy Segments Leading to Inherent Strong Growth Prospects % JB Pharma Revenue Segment CAGR JB Pharma CAGR Key Brands (MAT Sep’24) (MAT Sep’21-Sep’24) (MAT Sep’21-Sep’24) Hypertension 39% 10% 20% Lipid Management 4% 16%(1) 28%(1) (Rosuvastatin) Heart Failure 3
Slide 17: Focused Portfolio of Top 15 Pillar Brands
Focused Portfolio of Top 15 Pillar Brands Driving ~70% of the Domestic Revenue MAT Sep’20 MAT Sep’24 17% 23% 29% 27% 14% 1% each 8% 2% 23% 8% 2% 9% 3% 8% 10% 4% 7% 5 brands contributing to ~70% of the revenue 15 brands contributing to ~70% of the revenue Built a Strong, Diversified Portfolio of 6 Me
Slide 18: Key Highlights of JB Pharma
Key Highlights of JB Pharma 1 2 3 4 One of the Fastest Growing Increasing Chronic Presence Track Record of Building Strong GTM Model with Pan Domestic Pharma Companies with ~2 Times Large Brands with Big India Presence and Outperformance to IPM Brands Getting Bigger Consistently Improving Productivi
Slide 19: One of the Fastest Growing Domestic Pharma Companies
1 One of the Fastest Growing Domestic Pharma Companies 13% H1’FY25 Growth 11% MAT Sep’24 Growth 11% MAT Sep’24 Growth One of the Fastest Growing Domestic Pharma Companies 1.6x 1.4x 1.2x vs 8% for IPM vs 8% for IPM vs 9% for CVM 48% 46% 41% 54% 56% 52% Increasing Share of Domestic Revenue 52% 54% 59%
Slide 20: Strong Prescription-Led Growth
1 Strong Prescription-Led Growth Prescription Volume Growth Outperforming IPM Strong Prescriber Connect across Specialities Prescriptions CAGR (MAT Sep’20 - MAT Sep’24) 135,000 General/ Consulting Physicians 14% 23,000 Gynaecologists 11% 30,000 Dentists 20,000 Ophthalmologists IPM 20,000 Pediatricia
Slide 21: Increasing Chronic Presence with ~2 Times Outperformance to IPM
2 Increasing Chronic Presence with ~2 Times Outperformance to IPM Consistently Increasing Chronic Mix… ...With Strong Outperformance to IPM… …Leading to Significant Rank Improvement MAT CAGR (Sep’20 – Sep’24) Gained 3 Ranks in the Last 4 Years 21% 53% 52% 57% 63% #20 #21 11% #23 47% 48% 43% 37% MAT
Slide 22: Prescriber Coverage
2 #8 Position in Cardiac in IPM Anchored Around House of Mega Brands and Emerging Brands JB’s Cardiac Covered Market Portfolio of Mega Brands and Emerging Brands Consistently Gaining Market Share MAT Sep’24 Revenue Growth vs. Brand Market share(1) Rank 6 (INR cr) Category(1) Rank in AHT(3) 8 Mega Br
Slide 23: Track Record of Building Large Brands
3 Track Record of Building Large Brands… MAT Value Sales (INR cr) MAT Sep-24 Rank Market Share and Brand Growth Sep-24 CVM IPM Market Share(1) Brand CAGR(2) 431 #1 #27 54% 20% 5 brands in Top 150 of IPM 359 #2 #40 41% 9% Covering c.50%+ of Domestic 218 #1 #113 80% 18% Formulations Revenues… 199 #1 #
Slide 24: …with Big Brands Getting Bigger
3 …with Big Brands Getting Bigger Building Large Brand Families… …With Strong Capability to Build Brand Franchises through Lifecycle Management # of Brands by MAT Revenue Chart Title 20-50cr 50-100cr 100-300cr >300cr INR 390cr INR 719cr INR 326cr INR 428cr INR 224cr INR 330cr 2 MAT Sept’21 MAT Sept’
Slide 25: Strong GTM Model with Pan India Presence
4 Strong GTM Model with Pan India Presence and Consistently Improving Productivity Pan India Presence Sustained Improvements in Field Force Productivity x% Sales contribution by zone (MAT Sep’24) Field Force Productivity – Per Capita Per Month (INR Lakhs)(1) JB Pharma CAGR (MAT Sep’22-24) 2,600+ IPM
Slide 26: Track Record of Synergistic Brand Acquisitions
5 Track Record of Synergistic Brand Acquisitions… New / Key Brands Acquired Rationale Existing TAs 1 ✓ ◼ Overlap in the prescriber base (more than 70% of prescribers are General Physicians / FY22 Probiotic and IVF Consulting Physicians who are key prescribers base for JB) ◼ Sporlac, Lobun, Gynogen,
Slide 27: Capability to Scale up Acquired Brands Rapidly
5 …With Capability to Scale up Acquired Brands Rapidly Brand Sales (INR Cr) Sporlac Franchise 10% 23% 95 105 INR 83cr INR 137cr 78 MAT Sept’22 MAT Sept’24 Another INR 100cr+ SPORLAC GG SPORLAC EVA Brand MAT Sept 22 MAT Sept 23 MAT Sept 24 SPORLAC PLUS Acquired Pediatrics Ophthalmology Brands Brands
Slide 28: Diversified International Business Across CDMO, Formulations, and API
6 Diversified International Business Across CDMO, Formulations, and API CDMO International Formulations and API ◼ Direct front-end presence ◼ Distributor-led model Leading Global Position in $4.6b Lozenges Market Opportunity Direct Presence in Distributor Relationships in the US, Russia and South Af
Slide 29: Among the Top 5 CDMOs Globally for Lozenges
6 Among the Top 5 CDMOs Globally for Lozenges Key Highlights Key Enablers Top 5 global manufacturers of medicated and herbal lozenges Strong R&D Tenured State-of-the-art Best-in-class and Unique Customer Marquee Clientele and Brands across globally renowned consumer Manufacturing Equipment and Analy
Slide 30: World-Class Manufacturing Facilities
7 World-Class Manufacturing Facilities with Capabilities Across Multiple Dosage Forms 8 40+ 10 State of the Art Manufacturing Global Regulatory Dosage forms Plants in 5 Facilities Accreditations produced Tablets Vials Campus 1 (Panoli, Gujarat) Campus 2 (Panoli, Gujarat) Capsules Ointments Campus 3
Slide 31: Well Orchestrated Transformational Initiatives
8 Well Orchestrated Transformational Initiatives Resulting in Step Change in Quality of Business Multiple Strategic Initiatives Under the New Management… …has Led to Complete Transformation of the Business Parameters FY20 FY24 Revamped GTM strategy focused on lifecycle management of big brands – inc
Slide 32: Strategy Overview
Strategy Overview
Slide 33: Domestic Business – On Track Towards Strategic Priorities
Domestic Business – On Track Towards Achieving Strategic Priorities When We Started Current Position Mid to Long-term Objectives IPM Position Ranked #32 in IPM Ranking 22nd in IPM Ranked in IPM Top 15 Companies Contribution from Chronic Therapies ~45% of Domestic sales ~50% of Domestic sales ~60% of
Slide 34: Multiple Levers for Sustainable Growth
Multiple Levers for Sustainable Growth Growth Objectives Supported by Lean Organization Structure and Strong Governance Framework Domestic Business to Consistently Outperform Market Growth Sustained Growth Momentum in International Business Driven by ◼ CDMO business to maintain growth momentum aided
Slide 35: Financials
Financials
Slide 36: Consistent Revenue / EBITDA Growth Over the Years
Consistent Revenue / EBITDA Growth Over the Years Total Revenues (INR Cr) FY20-24 H1FY25 Domestic Formulations International Business CAGR YoY 3,484 3,149 14% 2% 2,424 1,587 2,043 1,509 2,005 1,775 1,778 1,236 822 954 1,127 808 1,173 1,640 1,897 1,183 797 892 970 18% 22% FY20 FY21 FY22 FY23 FY24 H1F
Slide 37: Improving Capital Efficiency and Free Cash Flow Profile
Improving Capital Efficiency and Free Cash Flow Profile Robust ROCE Metrics Reducing Net Working Capital Days Strong Cash Flow Conversion ROCE (%) Operating Cash Flow / Operating EBITDA (%) 42% 111 85% 82% 98 89 87 Impacted due to investments in 56% acquisition 27% 22% 21% 27% FY21 FY22 FY23 FY24 FY
Slide 38: JB’s Sustainability Initiatives
JB’s Sustainability Initiatives
Slide 39: Sustainability Report – FY 2023 - 2024
Sustainability Report – FY 2023 - 2024 Reporting Framework: Report prepared in accordance with the GRI 2021 Standards United Nations Sustainable Development Goals (UN SDGs) Reporting Period: This report covers the sustainability performance of the company for the period from 1st April 2023 to 31st M
Slide 40: Impact created in FY 2023 - 2024
Impact created in FY 2023 - 2024 Areas Description ESG Report JB Pharma published its third sustainability report aligned with the United Nations SDG Goals, GRI Framework, and SASB metrics. Det Norske Veritas (DNV) has provided Limited level assurance on the Sustainability Report 2024. The assurance
Slide 41: FY 2024 Sustainability Performance Highlights
FY 2024 Sustainability Performance Highlights Environment Social Governance • Emission (Scope1 & Scope2) intensity per rupee of turnover reduced • 10.9 % female representation • Zero cases pertaining to by 22.2% in workforce (Permanent). issues of conflict of interests in case of Directors. • 13.9%
Slide 42: Thank you
Thank you jbpharma/ www.jbpharma.com 41
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