Slide 1: Exchange filing cover letter for investor presentation
November 12, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relation Department Listing Department Phiroze Jeejeeboi Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Bandra-Kurla Complex, Mumbai - 400001. Bandra (East), Mumbai - 400051. Scrip Code: 524404 Symbol: MARKSANS Sub
Slide 2: Q2 & H1 FY25 Earnings Presentation
Q2 & H1 FY25 12th November 2024 Earnings Presentation BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2024 – Marksans Pharma Ltd., All Rights Reserved
Slide 3: 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 4: Table of Contents
Table of Contents Q2 & H1 FY25 Financial and Business Highlights 4 Marksans Pharma at a Glance 15 Marksan’s Journey 20 Strategic Initiatives 27 Sustainability at Marksans 35 Annexure 45 3
Slide 5: Q2 & H1 FY25 Financial and Business Highlights
Q2 & H1 FY25 Financial and Business Highlights
Slide 6: Management Commentary
Management Commentary “Q2 marks a strong performance on back of a robust Q1. Growth trajectory improved further with revenue growth of 21% YoY. We are happy to share that this growth was broad based across all our key markets, led by the US market and also driven by increased market share. We contin
Slide 7: Financial Highlights Q2 FY25 – YoY Performance
Financial Highlights Q2 FY25 – YoY Performance YoY Q2 FY25 Q2 FY24 YoY Performance Growth % Growth witnessed across all key markets, led by US Revenue ₹ 641.9 cr ₹ 531.2 cr 20.8% and followed by ANZ Continued softening of raw material prices and a Gross Profit ₹ 383.5 cr ₹ 278.5 cr 37.7% better prod
Slide 8: Financial Highlights Q2 FY25 – QoQ Performance
Financial Highlights Q2 FY25 – QoQ Performance QoQ Q2 FY25 Q1 FY25 QoQ Performance Growth % Mixed demand witnessed in key markets, with growth Revenue ₹ 641.9 cr ₹ 590.6 cr 8.7% led by US market. Stable price erosion for Rx products continued. Raw material prices continued to soften while the old Gr
Slide 9: Financial & Other Highlights – Q2 & H1 FY25
Financial & Other Highlights – Q2 & H1 FY25 Revenue Contribution for Q2 FY25: • US - ₹ 304.2 cr • UK & Europe - ₹ 246.7 cr • Australia & New Zealand - ₹ 63.6 cr • RoW - ₹ 27.5 cr Research & Development (R&D) spends at ₹ 10.7 cr in Q2 FY25, 1.7% of consolidated revenue Cash generated from operations
Slide 10: Quarterly Financial Trends
Quarterly Financial Trends Operating Revenue (₹ cr) Gross Profit (₹ cr) & Gross Margin (%) 642 384 313 329 586 591 290 279 560 531 59.7% 55.7% 52.4% 53.5% 51.8% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 EBITDA (₹ cr) & EBITDA Margin (%) PAT (₹ cr) & Net Margin (%) 160 25.
Slide 11: Revenue by Segment and Geography
Revenue by Segment and Geography FY24 Revenue by Segment Q2 FY25 Revenue by Geography US & North America - ₹ 304.2 cr UK & Europe - ₹ 246.7 cr Rx 37% YoY 21% QoQ 6% YoY 25.9% 2% QoQ 47.4% 38.4% OTC 74.1% FY24 OTC Revenue – ₹ 1,613.5 cr 4.3% 9.9% 17% YoY RoW - ₹ 27.5 cr Australia & New Zealand - ₹ 63
Slide 12: US & North America Q2 FY25 Performance
US & North America Q2 FY25 Performance Quarterly Performance (₹ cr) 47.4% 304 258 245 251 223 Revenues ₹ 304.2 cr 37% YoY 21% QoQ Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 US Overview Highlights • Growth driven by increase in • US & North America is a key growth market market share and new product launches
Slide 13: UK & Europe Q2 FY25 Performance
UK & Europe Q2 FY25 Performance Quarterly Performance (₹ cr) 38.4% 251 252 247 Revenues 233 233 ₹ 246.7 cr 6% YoY 2% QoQ Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 UK Overview Highlights • Soft growth YoY and a dip QoQ • Top 5 Indian pharmaceutical firms in the UK in terms of revenue was due to a delay in t
Slide 14: Australia & New Zealand Q2 FY25 Performance
Australia & New Zealand Q2 FY25 Performance Quarterly Performance (₹ cr) 9.9% 63 66 64 48 49 Revenues ₹ 63.6 cr 31% YoY 3% QoQ Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Australia & New Zealand Overview Highlights • QoQ witnessed a decline due to • In 2005, Marksans acquired 60% stake in Nova to have an est
Slide 15: RoW Business Q2 FY25 Performance
RoW Business Q2 FY25 Performance Quarterly Performance (₹ cr) 4.3% 27 29 28 23 Revenues 19 ₹ 27.5 cr 1% YoY 21% QoQ Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 RoW Overview Highlights • Favorable demand scenario in • RoW segment encompasses 10 countries, spanning across CIS and MENA regions key RoW markets h
Slide 16: Marksans Pharma at a Glance
Marksans Pharma at a Glance
Slide 17: Company Overview
Company Overview ₹ 2,177 cr 21.1% CFO of ₹ 230.4 cr in FY24 FY24 Revenue FY24 EBITDA Margin Cash balance : ₹ 657 cr (Q2 FY25) (OTC: 74.1%, Rx: 24.9%) 4 300+ Products 2,000+ 4 Manufacturing Units & and 1,500+ SKUs Total Employees 4 R&D Centers $100+mn in US Amongst Top 5 Accreditations Amongst the to
Slide 18: OTC Business
OTC Business Industry Marksans Large growing OTC Market OTC Business • According to IQVIA, Global OTC Market size in 2023 was • The OTC business includes store brands, private label $183 bn manufacturing for retailers and customers • Prescription (Rx) to over-the-counter (OTC) switches have • It als
Slide 19: Manufacturing Capabilities
Manufacturing Capabilities Manufacturing Facility in Southport, UK • Manufactures non-sterile liquids, ointments and powder sachets • Supplies to UK, West Africa & Middle East UK • Spread across 7,300 sq. mt. C A PAC I T Y AC C R E D I TAT I O N S 2 bn bottles p.a. Total Capacity : 1 bn tubes p.a. 2
Slide 20: R&D Capabilities
R&D Capabilities R&D Centers R&D (₹ cr) and R&D % to sales 40.0 4.0% 1.5% 2.0% 1.6% 1.6% 1.8% 35.0 1.4% 0.6% 0.6% 0.7% 2.0% 30.0 35 Southport, United Kingdom 0.0% 30 29 25.0 Farmingdale, United States -2.0% 20.0 23 Navi Mumbai, India 19 -4.0% Goa, India 15.0 15 -6.0% 10.0 5.0 8 -8.0% 5 5 0.0 -10.0%
Slide 21: Marksan's Journey
Marksan’s Journey
Slide 22: Our Key Events
Our Key Events 2015 2024 Marksans crossed Acquired Time Cap ₹ 2,000 cr revenue Laboratories Inc. USA 2023 2001 1. Raised ₹ 372.40 cr in Marksans was incorporated as a equity via conversion wholly owned subsidiary of of warrants issued to Glenmark Pharmaceuticals Ltd. 2017 OrbiMed and Increased focus
Slide 23: Growth and Achievements Since 2017
Growth and Achievements Since 2017 Revenue growth of ~2.8x to SKUs growth of ₹ 2,177 cr ~75% to 1500+ Consistent Manufacturing OTC Revenue EBITDA margin capacity increased growth in cash growth of ~3.6x expansion of from 6 bn units p.a. from operations in 2017 to 26 bn* to ₹ 1,613 cr ~1,537 bps over
Slide 24: Financial Trends – High Growth Trajectory
Financial Trends – High Growth Trajectory Operating Revenue (₹ cr) EBITDA (₹ cr) & EBITDA Margin (%) 2,500.0 2,177 21.1% 24.7% 2,000.0 1,852 17.4% 1,491 17.0% 18.3% 1,500.0 1,376 1,134 13.2% 912 1,005 5.8% 8.6% 459 1,000.0 767 340 339 259 500.0 192 78 132 45 0.0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY
Slide 25: Financial Trends – High Growth Trajectory
Financial Trends – High Growth Trajectory Total Assets (₹ cr) Net Debt to EBITDA 3,000.0 2,681 2.0x 1.6x Cash positive balance sheet for over 5 years 2,500.0 2,190 1.5x 1.0x 2,000.0 1.0x 0.5x 1,640 0.5x 1,500.0 1,228 0.0x 804 897 -0.5x -0.4x 1,000.0 752 732 -1.0x -0.6x -1.5x 500.0 -1.2x -2.0x -1.5x
Slide 26: Proven Success in Acquisitions
Proven Success in Acquisitions Acquisitions Manufacturing unit from Teva Pharma Target Country Australia United Kingdom United Kingdom United States UAE India December 31, Transaction Date March 24, 2006 August 27, 2008 June 30, 2015 April 25, 2022 April 19, 2023 2007 Sales growth ~74x ~7x ~15x ~4x
Slide 27: 2 Year Shareholder Return
2 Year Shareholder Return Indexed Share Price Movement (₹) Marksans Nifty Pharma 639 179 100 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 • May 2023: Dividend of ₹ 0.5 per equity share ~540% share price increase in last 2 years • May 2024: Dividend of ₹
Slide 28: Strategic Initiatives
Strategic Initiatives
Slide 29: Core Strategies for Future Growth
Core Strategies for Future Growth 01 Expanding the OTC business • Aim to capture a significant part of the multi-billion-dollar OTC opportunity. According to IQVIA, Global OTC Size in 2025 is expected to be ~$ 204bn. • Our OTC segment grew at CAGR of 17% (from FY17-FY24). Majority of revenue in OTC
Slide 30: Capturing OTC Opportunity
Capturing OTC Opportunity Global Category Value Share ($ bn) Expanding OTC Business Capture multi- • Marksans competes in large and billion dollar OTC growing categories Cough and Cold 43 opportunity • Increasing store brand penetration in Vitamins and Tonics 34 Strengthening North America Business
Slide 31: Continued Expansion of Our Product Pipeline
Continued Expansion of Our Product Pipeline Continued focus on R&D leading to strong product pipeline and successful launches • 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 and expected to be lau
Slide 32: Key Product Launches in Last 2 Years
Key Product Launches in Last 2 Years Brand Composition Therapy Segment Market LEVONORGESTREL TABLETS LEVONORGESTREL TABLETS 1.5 MG TABLETS Hormonal UK RASAGILINE TABLETS RASAGILINE 1 MG TABLETS Central Nervous System (CNS) UK OLMESARTAN TABLETS OLMESARTAN 10, 20, 40 MG FLIM-COATED TABLETS Cardiovasc
Slide 33: Strong Balance Sheet to Drive Inorganic Growth
Strong Balance Sheet to Drive Inorganic Growth Cash balance of ₹ 657 cr as of 30th September 2024. Cash positive for more than 5 years. Low financial risk Consistent annual cash generation. ₹ 230 cr in FY24 Driving inorganic growth. Evaluating acquisitions in Europe Disciplined capital allocation re
Slide 34: We've Delivered What We Promised
We’ve Delivered What We Promised Marksans Guidance How have we performed? Revenue guidance of ₹ 2,000 cr Achieved EBITDA margin guidance of 20% Achieved Focus on expanding OTC business – ~3.6x revenue growth since 2017 Achieved Disciplined capital allocation approach - Effectively utilizing the cash
Slide 35: Growth: FY25 and Beyond
Growth: FY25 and Beyond Disciplined efforts to become future ready Growth FY25 and Beyond • Doubling low-cost manufacturing capacity in India from 8bn ❖ High growth in revenues and margin. Aim to to 16bn units. Total manufacturing capacity of Marksans is reach revenue of ₹ 3,000 cr in next 2 years 2
Slide 36: Sustainability at Marksans
Sustainability at Marksans
Slide 37: Driving Sustainable Progress
Driving Sustainable Progress Our commitment to Environmental, Social, and Governance (ESG) Environment Social Governance Ensure sustainability in our Positively impact our people and Bring about an industry principles is central to our operations and projects by positively impacting the natural comm
Slide 38: Empowering Communities
Empowering Communities 01 02 03 04 05 Health Care Education Farming and Plantation Food Distribution Overall wellbeing of women and • Organized free health • Donations towards • Tree plantation in Verna • Distribution of free food children check-up camps and construction of new school Industrial Est
Slide 39: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal 2025 Initial Milestone Status • Reduction of annual virgin • Use of 100% recyclable HDPE/ • In Progress plastic usage in packaging in PET bottles/ LDPE Shrink collaboration with suppliers wrapping and customers • Use of 70-80% recyclable
Slide 40: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal Initial Milestone Status • Focus on areas of preventive • Mobile health care units to • 2% of the net profit is spent healthcare, education, support the grievances of for overall development of eradicating malnutrition, communities in aro
Slide 41: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal Initial Milestone Status • By 2028, we plan to achieve • Waste disposal with co- • In 2023, 12mt waste was co- sustainable waste disposal processing – Recycled and processed methods Reused • Use of renewable/ recyclable • 100% Waste water
Slide 42: Corporate Governance Principles
Corporate Governance Principles Conducting Business in Ethical, Transparent Business continues to create value for and Accountable manner customers and consumers responsibly Producing goods which have a Application of Best management sustainable life cycle practices We at Marksans Pharma Ltd adhere
Slide 43: Board of Directors - Guided By Visionary Minds
Board of Directors - Guided By Visionary Minds Mark Saldanha Sandra Saldanha Varddhman Jain Dr. Sunny Sharma Founder, Chairman & Promoter, Whole-Time Director Non-Executive Director Managing Director Whole-Time Director • Science Graduate • MA in Arts (Sociology) • M. Pharm (Pharmaceuticals) • MBA,
Slide 44: Board of Directors - Guided By Visionary Minds
Board of Directors - Guided By Visionary Minds Seetharama Raju Buddharaju Abhinna Sundar Mohanty Digant Mahesh Parikh Shailaja Vardhan Independent Director Independent Director Independent Director Independent Director • B.Sc., PGDBM, PGDMSM • M.Sc., Mathematics • MBA, Finance • Seasoned professiona
Slide 45: Experienced Leadership Team
Experienced Leadership Team Mark Saldanha Varddhman Jain Sathish Kumar Anjani Kumar David Mohammed Jitendra M Sharma Founder, Chairman & Whole-Time Director MD – Marksans Pharma COO – Global Operations MD – Pharmaceuticals Chief Financial Officer Managing Director and USA Australasia Pty Ltd UK Ltd.
Slide 46: Annexure
Annexure
Slide 47: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ cr) Q2 FY25 Q2 FY24 Q1 FY25 YoY QoQ H1 FY25 H1 FY24 YoY FY24 Operating Revenue 641.9 531.2 590.6 20.8% 8.7% 1,232.5 1,031.3 19.5% 2,177.4 Gross Profit 383.5 278.5 328.8 37.7% 16.6% 712.4 535.8 33.0% 1,139.3 Gross Margin % 59.7% 52.4% 55.7% 732 bps
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ cr) H1 FY25 FY24 Particulars (₹ cr) H1 FY25 FY24 EQUITY AND LIABILITIES ASSETS EQUITY NON-CURRENT ASSETS Share capital 45.3 45.3 Property, plant & equipment 674.9 675.7 Reserves and surplus 2,236.1 2,019.7 Capital work-in-progress 11.2 5.4 Non-Controlling in
Slide 49: For more information please contact
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 © 2024 Marksans Pharma Ltd., All Rig