24 slides from Macro Group Pharmaceutical S.a.e's earnings presentation, November 2024
Slide 1: Investor Relations Presentation 9M 2024
Investor Relations Presentation 9M 2024
Slide 2: Agenda
Agenda 1 Company Overview 2 9M24 Financial & Operational Performance 3 Quarterly Achievements and Plan 5 Appendix
Slide 3: Company Overview
Company Overview
Slide 4: Company Overview (1/3)
Company Overview (1/3) 9M 2024 Financial Highlights EGP 319 mn EGP 193.3 mn EGP 19.4 mn Revenues(1) Gross Profit Adjusted EBITDA (2) 45.9% YoY 54.7% YoY / 60.6% margin 89.5% YoY / 6.1% margin EGP- 66.1 mn EGP -31.1mn EGP -34.1 mn Net Loss Normalized Net Loss(2) Operating Cashflow 167% YoY /
Slide 5: Company Overview (2/3)
Company Overview (2/3) Macro is making its way back to become the leading cosmeceuticals manufacturer in the Egyptian market after losing its market positioning against competition in 1Q24 Market share dynamics 32.91% • Macro Group Pharmaceuticals experienced a significant shift 31.43% in market dyn
Slide 6: Company Overview (3/3)
Company Overview (3/3) MACRO Advantage An Innovative Market Research and Concept Development Approach, Closing the Customers, Doctors and Pharmacies Feedback Loop Doctors Recommend Express Need Products Highly-incentivized salesforce Provide Feedback Customers Sales Team Market Innovation: & Direct
Slide 7: 9M24 Financial & Operational Performance
9M24 | Financial & Operational Performance
Slide 8: Efficient distribution platform with wide coverage
Efficient distribution platform with wide coverage Macro’s recently expanded and highly capable and incentivized distribution team provides market penetration and national-level coverage across all channels Direct Sales Channels • Revenues from direct sales channels came in at EGP 177.2 million Dist
Slide 9: 9M24 Income Statement Highlights
9M24 |Income Statement Highlights 9M24 Highlights Revenues (1) Volume Sold Gross Profit • Macro’s net revenues declined by 46% YoY reaching EGP 319 (EGP mn) (mn units) (EGP mn/% margin) million in 9M24, this decline was primarily due to 36% lower volumes sold during the period owing to management’s
Slide 10: 3Q24 Income Statement Highlights
3Q24 |Income Statement Highlights 3Q24 Highlights Revenues(1) Volume Sold Gross Profit • Macro’s revenues booked EGP 164 million in 3Q24, down by 35% (EGP mn) (mn units) (EGP mn/% margin) against the 252 million booked last year, on the back of lower volumes sold during the period. It is worth menti
Slide 11: 3Q24 Income Statement QoQ Highlights
3Q24 |Income Statement QoQ Highlights Revenues(1) Volume Sold Gross Profit (EGP mn) (mn units) (EGP mn/% margin) 63.1% 58.9% 96.5 3.9 71% 90% 60% 164 60.4 95.7 2.0 2Q24 3Q24 2Q24 3Q24 2Q24 3Q24 EBITDA Net Income (EGP mn/% margin) (EGP mn/% margin) 4.6% 24.8% -11.2% 13.8% 41 22.7 312% 827% (10.7) 4.4
Slide 12: 9M24 Balance Sheet Highlights
9M24 | Balance Sheet Highlights Net Working Capital Total Debt Short-Term Debt CAPEX (EGP mn / % change) (EGP mn / % change) (EGP mn / % change) (EGP mn / % Change) ADIB AUBE FAB 2.2% 1.1% 275.1 165 81 244.7 9.5% 220.3 11% 42% 6.9 6.3 193.7 23.4 51% 96.6 68.4 45.8 12.7 FY23 9M24 9M23 9M24 FY23 9M24
Slide 13: 9M24 Working Capital Analysis
9M24 | Working Capital Analysis Cash Conversion Cycle | CCC Cash Conversion Cycle (CCC) 67 days 129 days 424 120 days 357 304 290 • MACRO’s CCC recorded 304 days in 9M24, reflecting a decline of 120 days 228 YoY, driven primarily by a 49-day decline in Inventories DIO, a 66-day decline in receiv
Slide 14: Quarterly Achievements and Plan
Quarterly Achievements and Plan
Slide 15: FY24: Driving Growth Across Functions
FY24: Driving Growth Across Functions Revenues | EGP mn Sales and Marketing Jan-Oct 2024 Marketing team is steadfast in their efforts to 76 79 75 72 Q-o-Q volume grow sales through volume expansion which is 61 61 59 67 71 61 reflected in a 90% Q-o-Q volume growth during 57 57 growth 3Q24. Out sales
Slide 16: 9M24 Export Highlights
9M24 | Export Highlights Exports were up 1.6% YoY to EGP 20 million and Total Export Revenues | EGP mn Export breakdown by country | 9M24 grew 123% QoQ in 3Q24 to EGP 13.7 million, representing 8% of total revenues for the quarter. 1% 14 3%2% The growth was primarily driven by Macro reviving 9% ship
Slide 17: FY24: Driving Growth Across Functions
FY24: Driving Growth Across Functions Supply Chain Finance & IT Human Resources Plant and Admin - Managed to secure sourcing - As planned, the finance team - Applied the whistleblowing - Working on the EDA for production plan that was able to successfully finalize policy requirements for license inc
Slide 18: FY24: Driving Growth Across Functions
FY24: Driving Growth Across Functions Commercial SFE Sales and Marketing R&D - Applying the new commercial - Securing IQVIA data for 2024 - Relaunch of Lucente and - Transfer of R&D labs to the structure - Continuous upgrade of Solodex facility in order to drive dashboard to drive efficiently and in
Slide 19: Appendix
OY QO Appendix
Slide 20: 9M24 Consolidated Income Statement
9M24 | Consolidated Income Statement 9M-2023 9M-2024 % CHG Consolidated Income Statement | EGP Actual Actual Y-o-Y Sales Revenue(1) 589,530,428 319,207,782 -45.9% COGS (163,175,878) (125,858,362) -22.9% Gross Profit 426,354,550 193,349,420 -54.7% Gross profit margin 72.3% 60.6% -11.7 pps G&A Expense
Slide 21: 3Q24 Consolidated Income Statement
3Q24 | Consolidated Income Statement Q3-2023 Q3-2024 % CHG Consolidated Income Statement | EGP Actual Actual Y-o-Y Sales Revenue(1) 252,295,404 163,955,577 -35.0% COGS (66,979,832) (67,456,359) 0.7% Gross Profit 185,315,572 96,499,218 -47.9% Gross profit margin 73.5% 58.9% -14.6 pps G&A Expenses (28
Slide 22: 3Q24 Consolidated Income Statement
3Q24 | Consolidated Income Statement Q2-2024 Q3-2024 % CHG Consolidated Income Statement | EGP Actual Actual Q-o-Q Sales Revenue(1) 95,716,084 163,955,577 71.3% COGS (35,347,371) (67,456,359) 90.8% Gross Profit 60,368,713 96,499,218 59.8% Gross profit margin 63.1% 58.9% 4.2 pps G&A Expenses (25,870,
Slide 23: 9M24 Consolidated Balance Sheet
9M24 | Consolidated Balance Sheet Consolidated Balance Sheet | EGP Dec-23 Sep-24 % CHG Y-o-Y Inventories 141,563,256 109,293,314 -22.8% Trade and notes receivables 164,959,004 198,496,412 20.3% Prepayments & other debit balances 41,908,894 44,091,349 5.2% Financial asset through profit or loss 0 0 n
Slide 24: 9M24 Consolidated Cash Flow Statement
9M24 | Consolidated Cash Flow Statement % CHG % CHG Consolidated Cash Flow Statement | EGP 9M23 9M24 (Continued) 9M23 9M24 Y-o-Y Y-o-Y Cash flows from operating activities Cash flows from investing activities Profit for the year before income tax 126,224,130 (66,025,726) -152.3% Payments to purchase