Marksans Pharma Limited · NSE:MARKSANS
Marksans Pharma — Q1 FY2025 Earnings Presentation
51 slides from Marksans Pharma's earnings presentation, Aug 13, 2024
Slide 1: Stock exchange filing cover letter
Date: August 13, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relation Department Listing Department Phiroze Jeejeeboi Towers, Exchange Plaza, C-1, 1, Block-G, Block Dalal Street, Bandra-Kurla Complex, Mumbai - 400001. Bandra (East), Mumbai - 400051. Scrip Code: 524404 Symbol:
Slide 2: Q1FY25 Earnings Presentation
Q1FY25 13th August 2024 Earnings Presentation BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2021 – Marksans Pharma Limited, 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 4 Q1FY25 Financial and Business Highlights 16 Marksans Pharma at a Glance 21 Marksan’s Journey 28 Strategic Initiatives 38 Sustainability at Marksans 3
Slide 5: Q1FY25 Financial and Business Highlights
Q1FY25 Financial and Business Highlights
Slide 6: Management Commentary
Management Commentary “We are delighted to build on the growth momentum from the last year, the first quarter of FY25 has shown strong start with 18% YoY increase in revenue and 26% YoY increase in EBITDA. The growth is supported by increase in share from existing customers and new launches. We expe
Slide 7: Financial Highlights Q1FY25 – YoY Performance
Financial Highlights Q1FY25 – YoY Performance YoY Growth ₹ Cr. Q1FY25 Q1FY24 % YoY Performance Revenue growth is being driven by new launches and Revenue 590.6 500.0 18.1% increase in our share with existing customers in our key markets. Gross Profit 328.8 257.3 Gross Profit growth is mainly on acco
Slide 8: Financial Highlights Q1FY25 – QoQ Performance
Financial Highlights Q1FY25 – QoQ Performance QoQ Growth ₹ Cr. Q1FY25 Q4FY24 % YoY Performance We witnessed mixed demand conditions in our key markets and stable Revenue 590.6 560.0 5.5% price erosion for Rx products in Q1FY25. Gross Profit 328.8 290.2 Improved gross margin as we experience benefits
Slide 9: Other Highlights – Q1FY25
Other Highlights – Q1FY25 Revenue from operations at Rs. 590.6 Cr.: US revenues at Rs.250.9 Cr., UK and Europe revenues at Rs.251.5, Australia and New Zealand revenues at Rs.65.6 Cr., and RoW & UAE revenues at Rs.22.7 Cr. EBITDA at Rs.128.4 Cr., EBITDA margin at 21.7% Research & Development (R&D) sp
Slide 10: Quarterly Financial Trends
Quarterly Financial Trends Operating Revenue (₹ Cr.) Gross Profit (₹ Cr.) & Gross Profit Margin (%) 700.0 600.0 55.7% 500.0 53.5% 52.4% 400.0 51.5% 51.8% 300.0 586 591 49.8% 313 329 500 531 560 257 279 290 200.0 486 242 100.0 0.0 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q4FY23 Q1FY24 Q2FY24 Q3FY24
Slide 11: Revenue by Segment and Geography
Revenue by Segment and Geography FY24 Revenue by Segment Q1FY25 Revenue by Geography US & North America - Rs. 250.9 Cr. Rx, UK and Europe Rs. 251.5 Cr 30% YOY 2% QoQ 25.9% 11% YoY 8% QoQ 42.5% 42.6% 3.8% RoW Rs. 22.7 Cr OTC, 74.1% 2% YoY 20% QoQ 11.1% FY24 OTC Revenue – Rs. 1,613.5 Cr. 17% YoY Austr
Slide 12: US & North America Q1FY25 Performance
US & North America Q1FY25 Performance Quarterly Performance (₹ Cr.) 42.5% 258 245 251 223 194 193 Revenues Rs. 250.9 Cr 30% YoY 2% QoQ Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 US Overview Growth Drivers • Price erosion of Rx products is • US & North America is key growth market stable • The Company
Slide 13: UK and Europe Q1FY25 Performance
UK and Europe Q1FY25 Performance Quarterly Performance (₹ Cr.) 42.6% 251 252 226 233 233 206 Revenues Rs. 251.5 Cr 11% YoY 8% QoQ Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 UK Overview Growth Drivers • Volume growth, increase • Top 5 Indian pharmaceutical firms in the UK in terms of revenue market sh
Slide 14: Australia and New Zealand Q1FY25 Performance
Australia and New Zealand Q1FY25 Performance Quarterly Performance (₹ Cr.) 11.1% 63 63 66 59 48 49 Revenues Rs. 65.6 Cr 12% YoY 4% QoQ Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Australia and New Zealand Overview Growth Drivers • We anticipate stronger • In 2005, Marksans acquired 60% stake in Nova t
Slide 15: RoW Business Q1FY25 Performance
RoW Business Q1FY25 Performance Quarterly Performance (₹ Cr.) 3.8% 29 27 23 22 23 Revenues 19 Rs. 22.7 Cr 2% YoY 20% QoQ Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 RoW Overview Growth Drivers • Favorable demand scenario in • ROW includes South-East Asia, MENA, Russian Federation & Africa key RoW mark
Slide 16: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (₹ cr.) Q1FY25 Q1FY24 Q4FY24 YoY QoQ FY24 Operating Revenue 590.6 500.0 560.0 18.1% 5.5% 2,177.4 Gross Profit 328.8 257.3 290.2 27.8% 13.3% 1,139.3 Gross Margin % 55.7% 51.5% 51.8% 423 bps 386 bps 52.3% EBITDA 128.4 102.0 109.6 26.0% 17.1% 458.6 EBI
Slide 17: Marksans Pharma at a Glance
Marksans Pharma at a Glance
Slide 18: Company Overview
Company Overview ₹ 2,177 Cr 21.1% Amongst Top 5 FY24 Revenue FY24 EBITDA Margin Indian Companies in (OTC : 74.1% , Rx : 24.9%) UK ₹ 691 Cr 300+ Product and Cash Balance as of 30th June 2024 1500+ SKUs ₹ 230.4 Cr Net cash positive balance sheet for FY24 Cash from over 5 years Operations 4 ~2,000+ Acc
Slide 19: OTC Business
OTC Business Marksans competes in a large growing OTC Market Marksans OTC Business • According to IQVIA, Global OTC Market size in 2023 was $183 bn In the OTC Business, Marksans manufactures store • Prescription (Rx) to over-the-counter (OTC) switches brands/private label manufacturing for have been
Slide 20: Manufacturing Capabilities
Manufacturing Capabilities Manufacturing Facility in Southport, UK • Manufactures non-sterile liquids, ointments and powder sachets • Supplies to UK, West Africa & Middle East • Spread across 7,300 sq. meters UK C A PAC I T Y ACC R E D I TAT I O N S 2 bn bottles per annum Total Capacity : 26 bn unit
Slide 21: R&D Capabilities
R&D Capabilities R&D Centers R&D (₹ Cr.) and R&D % to sales 40.0 4.0% 2.0% 2.0% 35.0 1.5% 1.4% 1.6% 1.6% 2.0% 0.6% 0.6% 0.7% 30.0 35 Southport, United Kingdom 0.0% 30 29 25.0 Farmingdale, United States -2.0% 20.0 Navi Mumbai, India 19 -4.0% Goa, India 15.0 15 -6.0% 10.0 12 5.0 8 -8.0% 5 5 0.0 -10.0%
Slide 22: Marksan's Journey
Marksan’s Journey
Slide 23: Our Key Events
Our Key Events Marksans was incorporated Acquired Nova Acquired Time Cap 1. Raised Rs. 372.40 cr. in equity via conversion as a wholly owned Pharmaceuticals Australasia Laboratories Inc. USA of warrants issued to OrbiMed and Promoters subsidiary of Glenmark Pty Ltd 2. Acquired a manufacturing facili
Slide 24: Growth and Achievements since 2017
Growth and Achievements since 2017 Revenue growth of ~181% to SKUs growth of Rs 2,177 Cr. in ~75% to 1500+ FY24 OTC Revenue EBITDA margin Consistent Manufacturing capacity increased from 6 bn units growth of ~259% expansion of growth in cash per annum in 2017 to 26 to Rs 1,613 Cr. in ~1,437 bps in f
Slide 25: 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 1,000.0 767 340 339 259 500.0 192 132 78 45 0.0 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 26: Financial Trends – High Growth Trajectory
Financial Trends – High Growth Trajectory Total Assets (₹ Cr.) Net Debt to EBITDA 3,000.0 2,681 2,500.0 2.00x 1.60x 2,190 1.50x 1.00x 2,000.0 1,640 1.00x 0.50x 0.50x 1,500.0 1,228 0.00x 804 897 -0.50x 1,000.0 752 732 -1.00x -0.40x -0.60x -1.50x 500.0 -1.20x -2.00x -1.50x 0.0 -2.50x -2.00x FY17 FY18
Slide 27: Proven Success in Acquisitions
Proven Success in Acquisitions Acqusition Manufacturing unit from Teva Pharma United Target Country Australia United Kingdom United States UAE India Kingdom Transaction December 31, March 24, 2006 August 27, 2008 June 30, 2015 April 25, 2022 April 19, 2023 Date 2007 Sales growth from ~74x ~7x ~15x ~
Slide 28: 2 Year Shareholder Return
2 Year Shareholder Return Share Price Movement (Rs.) Closing Price Rs 158.85 as of 28th June 2024 Closing Price Rs 43.70 as of 30th June 2022 • July 2022 : Buyback of ₹60 crore approved by the board Over 250% Capital Gains in last 2 years • May 2023 : Board recommended Dividend Rs. 0.5 per equity sh
Slide 29: Strategic Initiatives
Strategic Initiatives
Slide 30: Core Strategies for Future Growth
Core Strategies for Future Growth Expanding the OTC Business Capacity Expansion newly Continued product launches Supplement growth through Backward Integration for acquired Teva Pharma through a healthy product acquisitions sustained margin development • Aim to capture a significant Manufacturing un
Slide 31: Expanding OTC Business
Expanding OTC Business Capture multi-billion dollar Strengthening Business in Expanding Product Pipeline Complete coverage offering OTC opportunity North America in key therapeutic segments • Marksans competes in • Increasing Store Brand • Aim to focus on expanding • Strengthening our pipeline large
Slide 32: Capturing OTC Opportunity
Capturing OTC Opportunity Global Category Value Share ($ Bn) • Cough and cold and Respiratory (CCR) products Cough and Cold 43 comprise the largest OTC market sector Vitamins and Tonics 34 • Marksans is currently present in large market-size therapeutical segments in OTC -Pain Management and Pain Re
Slide 33: Scaling up business in North America
Scaling up business in North America Global OTC Drugs Market ($ Bn) • Marksans is present in the largest markets by total OTC drugs sales and its focus is to expand the footprint. 70 • North America and Western Europe have the highest market shares. North America OTC holds around ~25% of total globa
Slide 34: Continued expansion of our product pipeline
Continued expansion of our product pipeline Strong product pipeline followed by successful launches led by continued focus on R&D • 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
Slide 35: Key Product Launches
Key Product Launches 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 Cardiovascular System(CVS)
Slide 36: Strong Balance sheet to drive future inorganic growth
Strong Balance sheet to drive future inorganic growth Net cash surplus of Rs. 691 Cr as of 30th June 2024. Net cash positive for more than 5 years. Low Financial Risk Consistent annual cash generation. Rs. 230 Cr in FY24 Driving inorganic growth. Evaluating acquisitions in Europe Disciplined Capital
Slide 37: We've Delivered what we promised
We’ve Delivered what we promised Marksans Guidance How have we performed? Revenue guidance of Rs 2,000 Cr. Achieved Achieved EBITDA margin guidance of 20% Achieved Focus on expanding our OTC business – More than 200% revenue growth since 2017 Disciplined Capital Allocation Approach - Effectively uti
Slide 38: Growth FY25 and Beyond
Growth FY25 and Beyond Disciplined efforts in creating a future ready space Growth FY25 and Beyond • Doubling low-cost manufacturing capacity in India from 8bn to ❖ High growth in top-line revenue and margins. 16bn units. Total manufacturing capacity of Marksans is 26 bn Aim to reach revenue of Rs.
Slide 39: Sustainability at Marksans
Sustainability at Marksans
Slide 40: Driving Sustainable Progress
Driving Sustainable Progress Our commitment to Environmental, Social, Environment Social Governance and Governance (ESG) Ensure sustainability in our Positively impact our people and Bring about an industry operations and projects by community through utmost transformation by leading ethically princ
Slide 41: 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 42: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal 2025 Initial Milestone Status • Use of 100% recyclable Reduction of annual virgin HDPE/ PET bottles/ LDPE plastic usage in packaging in Shrink wrapping • In Progress collaboration with suppliers and • Use of 70-80% recyclable customers la
Slide 43: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal Initial Milestone Status • Waste disposal with co- • In 2022, 10 metric processing – Recycled and tonne waste was co- By 2028, we plan to achieve Reused processed sustainable waste disposal • 100% Waste water • Use of renewable/ methods u
Slide 44: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal Initial Milestone Status • Focus on areas of preventive healthcare, education, • Mobile health care units to eradicating malnutrition, support the grievances of • 2% of the net profit is spent CSR welfare of women and communities in aroun
Slide 45: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal Initial Milestone Status • Current workforce represents Asian, Black/ African American/ Hispanic/ Latino/ Native American/ White not of Hispanic Origin • Started compiling the • Focus on Equitability • Equal representation of male guidanc
Slide 46: Sustainability Goals and Progress
Sustainability Goals and Progress Sustainability Pillars Goal 2025 Initial Milestone Status • In 2019, Medical insurance facility initiated those are not covered under insurance • Increase coverage for benefits medical/ health insurance • All team members are • In 2021, Transportation Employee Wellb
Slide 47: Corporate Governance Principles
Corporate Governance Principles Conducting Business in Ethical, Transparent and Business continues to create value for customers and Accountable manner consumers responsibly. Producing goods which have a Application of Best management sustainable life cycle. practices. We at Marksans Pharma Ltd adhe
Slide 48: 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 Independent Director Managing Director Whole-Time Director ▪ Science Graduate ▪ MA in Arts (Sociology) ▪ M. Pharm (Pharmaceuticals) • MBA, MB
Slide 49: Board of Directors - Guided By Visionary Minds
Board of Directors - Guided By Visionary Minds Seetharama Raju Buddharaju Abhinna Sundar Mohanty Digant Mahesh Parikh Mrs. Shailaja Vardhan Independent Director Independent Director Independent Director Independent Director • M.Sc., Mathematics • MBA, Finance • Seasoned professional in • B.Sc., PGDB
Slide 50: 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 51: 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 © 2020 Marksans Pharma Limited, All R