Jamjoom Pharmaceuticals Factory Co. · TADAWUL:4015
Jamjoom Pharmaceuticals Factory — H1 2023 Earnings Presentation
21 slides from Jamjoom Pharmaceuticals Factory's earnings presentation, Aug 10, 2023
Slide 1: 1H 2023 Earnings Presentation
1H 2023 Earnings Presentation 10th August 2023 investors.jamjoompharma.com TASI Symbol: 4015
Slide 2: Disclaimer
CONFIDENTIAL Disclaimer This presentation has been prepared solely for use as an investor presentation for Jamjoom Pharmaceuticals Factory Company (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this pres
Slide 3: Agenda
CONFIDENTIAL Agenda 1 Business & Strategy 2 Financial Performance 3 Closing Remarks and Q&A 3
Slide 4: Business & Strategy
Business & Strategy Dr. Tarek Y Hosni, CEO
Slide 5: 2nd Quarter/1st Half Performance Highlights
CONFIDENTIAL 2nd Quarter/1st Half Performance Highlights SAR 298m - 2Q +25% YoY Capacity 67m units produced Revenue Utilization in 1H-23 vs 47m in 1H-22 (+41%) SAR 600m - 1H +25% YoY EBITDA SAR 99m - 2Q +53% YoY | 33% margin New Brands 7 new brands Contributing SAR 10m to 1H-23 revenues SAR 199m - 1
Slide 6: Jamjoom Pharma today and near-tomorrow
CONFIDENTIAL Jamjoom Pharma today and near-tomorrow To become a leading MEA organization by 2026 by consistently providing affordable, high Vision -quality healthcare solutions • Positively leverage KSA market – expand in tender, launch excellence & diversify portfolio • Focus on specific opportunit
Slide 7: Comprehensive execution of our strategy demonstrated by our ability to deliver sustainable shareholder returns
CONFIDENTIAL Comprehensive execution of our strategy demonstrated by our ability to deliver sustainable shareholder returns Net Profit, SARm 23% 19% 19% 28% Net profit margin at an industry-leading 28% in 1H23, as each of the last two full years’ Net Profits matched in the first 6 months of 2023 171
Slide 8: Diversifying our product portfolio to reduce reliance on flagship TAs in-line with strategic direction
CONFIDENTIAL Diversifying our product portfolio to reduce reliance on flagship TAs in-line with strategic direction… Evolution of therapeutic areas since FY21 Commentary 1% 10% 14% • Efficient diversification through launch excellence, 6% 45% 2% 6% commercial efforts and speed-to-market 6% 56% Other
Slide 9: Selectively penetrating key markets by reproducing its home market performance regionally
CONFIDENTIAL … whilst selectively penetrating key markets by reproducing its “home market” performance regionally Evolution of key market sales since FY20 Commentary • Increasing footprint in key markets of Gulf and Iraq 8% 7% through localized teams and commercial efforts 7% 4% 8% 6% 13% 11% • Impr
Slide 10: H1-23 Recap: Committed strategic direction lays the foundation for further growth
CONFIDENTIAL H1-23 Recap: Committed strategic direction lays the foundation for further growth Strong 25% topline growth, resulting from realization of JP’s commercial strategy and securing price increases for JP’s key products in KSA and internationally Best-in-industry profitability whilst remaini
Slide 11: Financial Performance
Financial Performance Mr. Muhammad Bin Khalid, Head of IR
Slide 12: 1H 2023 Financial performance: Healthy growth, expanding margins and higher cash conversion
CONFIDENTIAL 1H 2023 Financial performance: Healthy growth, expanding margins and higher cash conversion Summary Financials, SARm Commentary FY21 FY22 1H22 1H23 A Revenue 736 917 482 600 A Revitalized strategic direction, portfolio & market optimization, operational Cost of revenue (261) (323) (165)
Slide 13: Healthy growth derived through a mix of established and growing products
CONFIDENTIAL Healthy growth derived through a mix of established and growing products Revenue bridge, SARm Include SAR 1m price increase Includes SAR impact 24m price increase impact 1 2 3 1 Established Products include products launched prior to 2020. 2 Growth Products include products launched bet
Slide 14: Top line converted into industry-leading margins through efficient cost management
CONFIDENTIAL Top line converted into industry-leading margins through efficient cost management… Cost of revenue breakdown, SARm • Increased scale of production whilst maintaining A Direct production costs, SARm (% of total revenues) 1 Raw materials Salaries and related costs D&A Others GP margin 66
Slide 15: …and controlled operating expenses
CONFIDENTIAL …and controlled operating expenses Operating expenses breakdown, SARm Key Takeaways B Key operational costs, SARm (% of total revenues) • Expanded EBITDA margins resulting from cost-control Research & Development General & Administrative EBITDA margin Selling & Distribution initiatives
Slide 16: Improving working capital profile through close monitoring of receivables and inventory control
CONFIDENTIAL Improving working capital profile through close monitoring of receivables and inventory control Trade receivables, SARm Inventories, SARm 165 154 161 150 524 165 447 141 1H 2022 1H 2023 1H 2022 1H 2023 Days inventory outstanding Days sales outstanding Collections improved in 1H 2023 res
Slide 17: Closing Remarks
Closing Remarks Dr. Tarek Hosni, CEO
Slide 18: Joint Venture update from Algeria
CONFIDENTIAL Joint Venture update from Algeria JP is a 49% shareholder in a Joint Venture in Algeria: “Jamjoom Algeria Lildawa SPA” in partnership with a reputable Algerian Pharmaceutical company, “Vitalcare” Transaction Structure Acquisition of a pharmaceutical manufacturing facility for c.USD 25.5
Slide 19: Environmental, Social and Governance considerations are at the heart of Jamjoom Pharma
CONFIDENTIAL Environmental, Social and Governance considerations are at the heart of Jamjoom Pharma Healthy Planet Supported Society Conscious Business Continuous objective to minimize environmental impact of Providing affordable, effective medication to improve Comprehensive governance and board st
Slide 20: Updated financial guidance amidst overachievement of set targets
CONFIDENTIAL Updated financial guidance amidst overachievement of set targets Financial guidance ▪ 2023 revenue guidance (revised): 17-19% (15-17% previous guidance) Revenue growth ▪ 3-year revenue CAGR (2024-2026): 12-15% EBITDA ▪ 2023 (revised): c.31% (c.30% previous guidance) margin ▪ 2024 onward
Slide 21: Q&A
CONFIDENTIAL Q&A Dr. Tarek Hosni Mr. Muhammad Bin Khalid Chief Executive Officer Head of Investor Relations 21
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