Recordati S.p.a. · MIL:REC
Recordati — Recordati Industria Chimica e Farmaceutica — H1 2023 Earnings Presentation
19 slides from Recordati's earnings presentation, Jul 28, 2023
Slide 1: 2023 First Half Results
2023 FIRST HALF RESULTS Milano, July 28th 2023
Slide 2: First half results confirm strong momentum of the Group; new agreement with GSK
FIRST HALF RESULTS CONFIRM STRONG MOMENTUM OF THE GROUP; NEW AGREEMENT WITH GSK FURTHER STRENGTHENS SPC PORTFOLIO ▪ First half results confirm the excellent momentum of the Group, thanks to strong performance of all business, with robust growth across both SPC and RRD and continued delivery of secto
Slide 3: SPC urology franchise – agreement for distribution of Avodart and Combodart in Europe
SPC UROLOGY FRANCHISE – AGREEMENT FOR THE DISTRIBUTION OF AVODART® AND COMBODART® IN EUROPE Transaction overview • Agreement with GSK to commercialize Avodart and Combodart/Duodart across 21 countries(1), mainly in Europe • Operations to start on a country-by-country basis progressively upon complet
Slide 4: Strategic rationale of new agreement
STRATEGIC RATIONALE OF NEW AGREEMENT STRENGTHENING RECORDATI LEADERSHIP IN BENIGN PROSTATIC HYPERPLASIA (BPH) ✓ Two leading and well-established originator brands in core therapy area of urology ✓ Synergistic with Urorec, addressing different patient needs, strengthening leading BPH portfolio ✓ Leve
Slide 5: Continued robust underlying growth in SPC, absorbing strong FX headwind in Q2
CONTINUED ROBUST UNDERLYING GROWTH IN SPC, ABSORBING STRONG FX HEADWIND IN Q2 Key highlights Pharmaceutical Revenue (1) H1 2023 vs H1 2022 million Euro • Double-digit growth in the first half driven by volume through enhanced in-market competitiveness across all key + 10.2% markets and supported by
Slide 6: Endo and Onco franchise drive double-digit growth of Rare Diseases
ENDO AND ONCO FRANCHISE DRIVE DOUBLE-DIGIT GROWTH OF RARE DISEASES WITH RESILIENT METABOLIC SALES Revenue H1 2023 vs H1 2022 Key highlights million Euro • Endocrinology: continued strong uptake of Isturisa® in US, EU and RoW markets behind recent reimbursements and solid + 32.2% double-digit growth
Slide 7: All regions delivering solid growth
ALL REGIONS DELIVERING SOLID GROWTH COMPOSITION OF REVENUE BY GEOGRAPHY (million Euro) H1 2023 H1 2022 Change % Italy 157.5 143.8 9.5 U.S.A. 150.9 118.5 27.3 France 95.7 84.7 13.0 Germany 78.0 82.2 (5.1) Spain 76.7 69.3 10.7 Portugal 29.6 27.2 8.7 Türkiye 45.0 35.3 27.5 Russia, other CIS countries a
Slide 8: H1 2023 P&L – continuing to deliver sector leading margins
H1 2023 P&L – CONTINUING TO DELIVER SECTOR LEADING MARGINS OPERATING LEVERAGE AND COST DISCIPLINE SUSTAIN EBITDA AT 38.9% OF REVENUE (million Euro) H1 2023 H1 2022 Change % Revenue 1,044.3 892.5 17.0 Gross Profit 732.3 624.6 17.2 as % of revenue 70.1 70.0 Adjusted Gross Profit(1) 753.2 641.5 17.4 as
Slide 9: Strong H1 2023 cash flow – ahead of prior year
STRONG H1 2023 CASH FLOW – AHEAD OF PRIOR YEAR (million Euro) H1 2023 H1 2022 Change EBITDA(1) 406.2 334.9 71.3 Movements in working capital (76.7) (17.8) (58.9) Changes in other assets & liabilities (5.4) (11.1) 5.7 Interest received/(paid) (26.3) (8.1) (18.2) Income Tax Paid (34.9) (42.5) 7.6 Othe
Slide 10: Solid net financial position – leverage at 1.8x LTM EBITDA
SOLID NET FINANCIAL POSITION – LEVERAGE AT 1.8x LTM EBITDA AVODART AND COMBODART PAYMENT FINANCED VIA NEW CLUB LOAN FACILITY 30 JUN 2023 31 DEC 2022 Change (million Euro) Cash and cash equivalents 528.6 284.7 243.9 Short-term debts to banks and other lenders (15.9) (83.4) 67.5 Loans and leases – due
Slide 11: On track to deliver on upgraded FY 2023 guidance
ON TRACK TO DELIVER ON UPGRADED FY 2023 GUIDANCE FY 2022 FY 2023 Actual Target Outlook H2 As revised May 11th • Revenue: o Mid-single digit growth of SPC (at CER) Revenue 1,853.3 2,050 – 2,090 o Double-digit growth of RRD (at CER) o FX headwind approx. -5% in H2 (vs -3.3% in H1) o € 10-20 million ex
Slide 12: Questions & Answers
QUESTIONS & ANSWERS
Slide 13: Appendix
APPENDIX
Slide 14: Corporate products
CORPORATE PRODUCTS (million Euro) H1 2023 H1 2022 Change % Zanidip® and Zanipress® (lercanidipine+enalapril)(1) 103.5 86.6 19.5 Seloken®/Seloken® ZOK/Logimax® 49.0 48.5 1.1 (metoprolol/metoprolol+felodipine) Urorec® (silodosin) 35.8 31.1 15.0 Livazo® (pitavastatin) 24.5 23.5 4.2 Eligard® 55.0 51.5 6
Slide 15: Well-diversified revenue base
WELL–DIVERSIFIED REVENUE BASE Therapeutic Areas Geographic Total Revenue H1 2023 Pharmaceutical Revenue H1 2023 Specialty and Primary Care (incl. Chemicals) 67.0% Rare Disease 33.0% 2.9% Italy 4.4% 2.1% Cardiovascular 7.0% Metabolic 13.2% 7.0% 15.5% Urology 10.7% USA Endocrinology Gastro & Intestina
Slide 16: First half 2023 results – operating segments
FIRST HALF 2023 RESULTS OPERATING SEGMENTS Total Revenue H1 2023 EBITDA H1 2023 Specialty and Primary Specialty and Primary Care (incl. Chemicals) Care (incl. Chemicals) Rare Diseases Rare Diseases 38.2% 33.0% 67.0% 61.8% Margin on Sales: Rare Diseases: EBITDA (1) 45.0% Specialty and Primary care: E
Slide 17: First half 2023 results – adjusting items
FIRST HALF 2023 RESULTS – ADJUSTING ITEMS Reconciliation of Net income to EBITDA (1) (million Euro) H1 2023 H1 2022 Change % Net income 227.6 151.4 50.3 Summary of key items Income taxes 61.3 42.7 Financial (income)/expenses, net 24.6 38.1 o/w net FX (gains)/losses (2) (4.7) 18.7 o/w net monetary (g
Slide 18: Company declarations, disclaimers and profile
COMPANY DECLARATIONS, DISCLAIMERS AND PROFILE DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Luigi La Corte declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Fina
Slide 19: NS Recordati
NS RECORDATI
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