Chemical Works Of Gedeon Richter Plc · BET:RICHTER
Chemical Works Of Gedeon Richter — Gedeon Richter — Q1 2024 Earnings Presentation
38 slides from Chemical Works Of Gedeon Richter's earnings presentation, May 14, 2024
Slide 1: Gedeon Richter Q1 2024 Earnings Report
Gedeon Richter Q1 2024 Earnings Report 14 May 2024
Slide 2: Q1 2024 highlights – 2024 guidance fully reiterated
Q1 2024 highlights – 2024 guidance fully reiterated Q1 2024 CER revenue growth +15.5% (nearly 3ppt Pharma Revenues (CER*) FX headwind in Q1), at the high end of the FY guidance EUR 2.15-2.25bn guidance to grow „low-to-mid-teens”% range 2024 Q1 2024 CER Clean EBIT at EUR 178mn (+17%), in line Clean E
Slide 3: Financial and operational highlights
Financial and operational highlights Financial highlights • Pharma revenues were at HUF 200bn (EUR 515mn) in Q1 2024, up 13% YoY • CER (ex-FX) revenue growth was 16%, at the high end of the FY 2024 guidance range; the nearly 3ppt FX headwind in the period was due to the 19% weaker RUB YoY, only part
Slide 4: Steroids in wastewater – well below the safety threshold
Steroids in wastewater – well below the safety threshold Pharmaceuticals in the environment - steroids Sustainability reporting: 2023 report published + prep for CSRD • Following the working out and acceptance of a risk assessment system and methodology, we rolled out a voluntary steroid active • Ri
Slide 5: Financial Highlights
Financial Highlights 5
Slide 6: Pharmaceutical revenues (ex-FX) rose by 16% in Q1 2024
Pharmaceutical revenues (ex-FX) rose by 16% in Q1 2024 Pharmaceutical Revenues, cumulative (HUF bn, EUR mn) Pharmaceutical Revenues by region (HUF bn) +12.6% +15.5% Western Europe 30.9 36.5 200.1 205.3 515 Central Europe 39.6 177.8 Pharma other 43.4 GM Eastern Europe 43.5 38.5 BIO 46.7 North America
Slide 7: Outstanding WHC, normalizing BIO and strong Reagila drove internal performance in Q1
Outstanding WHC, normalizing BIO and strong Reagila® drove internal performance in Q1 WHC Revenues GM Revenues Key messages +17.2% +21.7% • WHC revenue growth accelerated in Q1 -1.7% +4.0% 2024 on the back of very strong 74.2 77.0 59.5 61.9 performance in China, LatAm and North 58.5 63.3 America, to
Slide 8: Opex increased by 17% YoY, driven by R&D (clinical programs)
Opex increased by 17% YoY, driven by R&D (clinical programs) Operating costs as a % of Pharma revenues (%) Operating costs (pharma) (HUFbn) 40 +17.1% 34 36 34 33 35 33 32 31 32 S&M 30 31 30 29 73.8 30 28 Cost of Sales 71.2 R&D 24 65.9 66.5 23 23 S&M 63.0 12.1 12.5 G&A 25 20 20 20 21 20 20 11.5 12.1
Slide 9: Clean EBIT (ex-FX) increased by 17% in Q1 2024
Clean EBIT (ex-FX) increased by 17% in Q1 2024 Pharmaceutical Clean EBIT, cumulative (HUF bn, EUR mn) Key messages +8.9% +16.7% • Clean EBIT (pharma) rose by 9% YoY in Q1 2024 to HUF 64.4bn, as the RUB weakness remained a headwind in Q1 64.4 165.7 59.1 69.0 vs. the base period 0.1 11.0 14.2 • FX-adj
Slide 10: Below-the-line: large FX gains boost net profit; normalized taxes
Below-the-line: large FX gains boost net profit; normalized taxes Net Profit in Q1 2024, below-Clean EBIT items (HUF bn) Includes all taxes in line with 3.0 Global Minimum Tax and some 1.7 1.2 deferred tax No material 13.7 adjustment items in Q1 15.2 68.2 Including HUF 2.2bn 65.0 income from Richter
Slide 11: Free Cash Flow: robust operating CF, more NWC build and M&A
Free Cash Flow: robust operating CF, more NWC build and M&A Free Cash Flow in Q1 2024 (HUF bn) Key messages M&A includes EUR 82.8mn • Free Cash Flow generation improved spent on the Formycon transaction significantly and FCF was HUF 52.7bn in Q1 Application of Cash Flow 2024, 35% higher YoY 83.2 • S
Slide 12: Research and Development
Research and Development R&D 12
Slide 13: R&D pipeline – changes during Q1 2024
R&D pipeline – changes during Q1 2024 Preclinical phase Clinical phase Regulatory & Launch Market Phase 3 Phase 1 Phase 2 Own Technology Development Clinical phase Neuropsychiatry Biotechnology Own Women’s Healthcare RSL* General Medicines new discontinued License * Ready-to-Sell Licensed pipeline 1
Slide 14: Neuropsychiatry
Neuropsychiatry CNS 14
Slide 15: Cariprazine revenues grew 22% in Q1 2024
Cariprazine revenues grew 22% in Q1 2024 CNS Revenue (HUFbn) CNS | HUF mn Q1 2023 Q1 2024 Ch. % YoY Revenues 43 295 52 968 22 Cost of Sales -215 -376 75 +22.3% Gross Profit 43 080 52 592 22 61.1 Gross Margin % 99.5 99.3 55.1 53.0 Sales & Marketing -796 -1 010 27 46.1 43.3 G&A -181 -245 35 R&D -5 366
Slide 16: Robust growth continued in the US, WEU and CEU
Robust growth continued in the US, WEU and CEU CNS Vraylar® Key messages +21.5% • Royalty income from Vraylar® in Q1 2024 +21.5% 58.3 49.4 approached HUF 50bn with an impressive, 52.3 49.4 40.7 20%+ growth YoY 40.7 43.4 27.5 • Based on AbbVie’s expectations, estimated net sales in 2024 is c. USD 3.4
Slide 17: Women's Healthcare
@) Women’s Healthcare WHC (i) GEDEON RICHTER Health fs our mission
Slide 18: Very strong top-line growth and decent profitability in Q1
Very strong top-line growth and decent profitability in Q1 WHC WHC | HUF mn Q1 2023 Q1 2024 Ch. % YoY Revenue (HUFbn) Revenues 63 320 74 188 17 Cost of Sales -18 343 -23 253 27 +17.2% Gross Profit 44 977 50 935 13 74.2 Gross Margin % 71.0 68.7 63.3 66.4 63.7 Sales & Marketing -19 955 -22 657 14 62.2
Slide 19: EVRA successful brand building continues; Bemfola is temporarily weaker
| EVRA successful brand building continues; Highlighted brands Bemfola is temporarily weaker WHC Bemfola® Key messages -13.1% -13.1% • Bemfola® sales are facing temporary 6.1 6.2 6.1 5.8 headwinds due to some supply chain 5.3 5.3 5.3 challenges in certain territories 4.3 • Sales growth of the fertil
Slide 20: UF reimbursement and Endometriosis indication drive the jump in Ryeqo sales
| UF reimbursement and Endometriosis indication Highlighted brands drive the jump in Ryeqo sales WHC Key messages Ryeqo® • Ryeqo® solid growth was driven by Uterine +195.6% +195.6% Fibroids reimbursement progress and upcoming Endometriosis roll out 3.2 3.2 • In Italy and Spain regional market access
Slide 21: Biotechnology
Biotechnology BIO 21
Slide 22: Revenues up strongly, margins improve despite higher R&D
Revenues up strongly, margins improve despite higher R&D BIO BIO | HUF mn Q1 2023 Q1 2024 Ch. % YoY Revenue (HUFbn) Revenues 7 858 11 441 46 Cost of Sales -6 087 -6 510 7 Gross Profit 1 771 4 931 178 +45.6% Gross Margin % 22.5 43.1 13.4 13.4 Sales & Marketing -1 534 -1 753 14 11.5 11.4 G&A -597 -912
Slide 23: Both CDMO and Terrosa contributed to strong revenue growth
Both CDMO and Terrosa contributed to strong revenue growth BIO Terrosa® Key messages • Terrosa ® revenues increased by 21% in +20.7% +20.7% Q1 2024 YoY, driven by the strong sales 6.2 6.1 6.1 performance in Central Europe, LatAm and 5.0 5.3 5.2 5.0 the APAC region 3.5 • Further geographical expansio
Slide 24: General Medicines
General Medicines GM 24
Slide 25: Revenues and EBIT still affected by the RUB weakness
Revenues and EBIT still affected by the RUB weakness GM GM | HUF mn Q1 2023 Q1 2024 Ch. % YoY Revenue (HUFbn) Revenues 59 467 58 473 -2 Cost of Sales -25 611 -26 411 3 -1.7% Gross Profit 33 856 32 062 -5 59.5 58.6 58.5 Gross Margin % 56.9 54.8 55.1 53.7 Sales & Marketing -12 150 -12 609 4 G&A -4 871
Slide 26: Diverging performance across TAs in Q1 2024
Diverging performance across TAs in Q1 2024 GM Total GenMed revenue by therapeutic areas (quarterly, HUF bn) Key messages -1.7% • Cardio revenues declined in Q1 2024 YoY as a result of the FX 59 59 58 headwind (RUB weakness) and the delivery schedules in Other 7 55 54 Eastern Europe 7 6 5 5 Anti-inf
Slide 27: Appendix
Appendix @ Geveon RicuTER Health is our mission 27
Slide 28: Significant FX gain (HUF 15bn) in Q1 2024 on the weaker HUF
Significant FX gain (HUF 15bn) in Q1 2024 on the weaker HUF Q1 2024 Q1 2023 Diff 13.1 Unrealised exchange (loss)/gain -16.6 29.7 2.1 Realised exchange (loss)/gain -8.5 10.6 -0.7 Result of realised & unrealised forward exchange contracts 3.6 -4.3 1.7 Interest income / (Interest expense) 2.7 -1.0 -0.5
Slide 29: Business units' P&L in Q1 2024
Business units’ P&L in Q1 2024 Pharma Q1 2024 WHC CNS BIO GM Pharma Other Eliminations Group total Other Revenues 74.2 53.0 11.4 58.5 3.1 200.1 6.0 -2.7 203.4 Cost of Sales -23.3 -0.4 -6.5 -26.4 -3.1 -59.6 -4.6 3.0 -61.2 Gross Profit 50.9 52.6 4.9 32.1 0.0 140.5 1.4 0.3 142.2 Sales & Marketing -22.7
Slide 30: Strategic positioning and vision of the business units
Strategic positioning and vision of the business units Pharma | Pharmaceuticals segment Name of the Business Units Brief description Key strategic goal Therapeutic areas Leveraging our world class early phase R&D capability Maximize the potential of cariprazine, while developing in the central nervo
Slide 31: Consolidated Income Statement
Consolidated Income Statement 2023 Q1 2024 Q1 2023 Change Consolidated P&L HUFm HUFm HUFm % 805 158 Revenues 203 432 209 653 -3.0% 199 304 of which royalty 50 611 41 940 20.7% (283 834) Cost of Sales (61 229) (82 290) -25.6% 521 324 Gross Profit 142 203 127 363 11.7% (146 047) Sales & marketing expe
Slide 32: Consolidated Balance Sheet - ASSETS
Consolidated Balance Sheet - ASSETS March 2024 Dec 2023 Change Consolidated Balance Sheet HUFm HUFm % ASSETS 1 422 139 1 361 217 4.5% Non-current assets 861 142 826 304 4.2% Property, plant and equipment 350 826 347 394 1.0% Goodwill 33 298 31 903 4.4% Other intangible assets 228 131 230 383 -1.0% I
Slide 33: Consolidated Balance Sheet - EQUITY AND LIABILITIES
Consolidated Balance Sheet - EQUITY AND LIABILITIES March 2024 Dec 2023 Change Consolidated Balance Sheet HUFm HUFm % EQUITY AND LIABILITIES 1 422 139 1 361 217 4.5% Capital and reserves 1 197 727 1 142 581 4.8% Share capital 18 638 18 638 0.0% Treasury shares (36 959) (29 982) 23.3% Share premium 1
Slide 34: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement March 2023 Dec 2023 March 2024 Change Consolidated cash flow adjusted HUFm HUFm HUFm % Operating activities 171 540 Profit before income tax 82 269 37 996 116.5% 50 808 Depreciation and amortisation 11 568 12 496 -7.4% 5 405 Non cash items (4 260) (9 985) -57.3% (11
Slide 35: Leadership team
Leadership team Gábor Orbán István Hamecz Dr István Greiner CEO CFO R&D Director Appointed Chief Executive Officer from Graduated at Corvinus University Appointed Research Director in 2014. November 1, 2017. Began his professional Budapest in 1991. He started his career in Chemical engineer (M.Sc),
Slide 36: Leadership team
Leadership team Katalin Erdei Tibor Horváth Attila Szénási Tamás Szolyák Commercial Director Chief Operating Officer Director of Global Regulatory HR Director Science & Portfolio Appointed Commercial Joined the Company in 2019 After graduating at the Management Director in 2017. Has an MSc as Direct
Slide 37: Contacts and Financial calendar
Contacts Financial calendar Company name: Gedeon Richter Plc. Sector: Pharmaceutical | 14 May 2024 – Q1 2024 results Company address: 1103 Budapest, Gyömrői út 19-21., Hungary | 6 August 2024 – H1 2024 results | 12 November 2024 – Q1-Q3 2024 results Telephone: +36 1 431 5764 Investor relations manag
Slide 38: Disclaimer
Disclaimer This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capita